Home / Crypto Currency / Cryptocurrency Derivatives Platform LedgerX Will Launch Ether Options: Report

Cryptocurrency Derivatives Platform LedgerX Will Launch Ether Options: Report


Ethereum price ether ETH

Advertisement

Institutional bitcoin derivatives platform LedgerX is reportedly preparing to expand its cryptocurrency product line to include ether, the native asset of Ethereum.

The U.S. firm, which was the first trading platform to receive approval from the Commodity Futures Trading Commission (CFTC) to list bitcoin derivatives, has developed a line of ether options and is ready to roll them out once it gets the go-ahead from regulators, industry publication The Block reports.

While LedgerX has not confirmed the news publicly, the report cites a source familiar with the company who says that the rollout could follow a CFTC meeting on Oct. 5, if regulators at the agency are sufficiently comfortable with the product.

LedgerX began offering bitcoin derivatives in Oct. 2017, two months before CBOE and CME launched their bitcoin futures contracts. At present, the firm offers next-day swaps, which are essentially one-day futures contracts settled in “physical” bitcoin, and options, which allow traders to purchase the right to buy or sell an asset at a particular price at an agreed-upon point in the future. Now, it wants to make these products available for ether, too.

Importantly, these options would allow traders to short the ethereum price, creating what’s known as a two-sided market for the second-largest cryptocurrency. While the creation of ethereum derivatives may lead to short-term price decreases — some research has connected this year’s cryptocurrency market decline to the launch of the first regulated bitcoin futures — they arguably contribute to more efficient price discovery, which could aid in making institutions more comfortable with cryptocurrency as an asset class and ether as an individual token.

Professional investors and cryptocurrency miners can also use options trading to hedge profits and reduce risk associated with price volatility.

If LedgerX does bring an ether product to market, it likely will not be long before CBOE — which is on record expressing its desire to add more cryptocurrency products — lists an ethereum futures contract as well. CME, as CCN reported, has released an ether price index but has been more guarded on its future plans for the cryptocurrency.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Bitcoin Sinks Below $3,200 as Teenage Bitcoin Millionaire Says Its Dead

It’s yet another dark day for Bitcoin. In fact, it’s the darkest one this year. The currency has once again set a new low for the year. At press time, the currency was trading at $3,230, down 10 percent in just 24 hours. The currency was performing especially poorly on some markets such as BitMEX, Coinbase Pro and Bitstamp where it was trading at $3,180. Since the week began, Bitcoin has lost close to $500. The currency’s immediate future looks bleak, especially given that it’s entering the weekend. Historically, cryptos have performed very poorly during weekends. With the currency sinking further and further for the year, one investor who made millions through Bitcoin has further added fuel to the fire. According to Erik Finman, the currency is dead. Finman made millions by investing in Bitcoin back in 2011 when only a few investors knew of the currency. However, according to him, the currency could have a few more bull runs but in the long term, it’s dead. Bitcoin Could Test the $3,000 Level Bitcoin hasn’t been for the faint hearted this year. It has tested various support levels and come up short. The $6,000 level seemed strong for quite some time, but even that came up short. And now, the currency seems poised to test the $3,000 level. In just the past one month, Bitcoin has halved in value. The assault had seemed to begin a reversal days ago when it hit $3,700 on some markets, but the bears seem to be in control of the market movements. On most markets, the father of crypto was trading just above $3,200. HitBTC continues to be one of the most friendly markets, with the price standing at $3,318. However, on American exchanges, the currency continues to perform dismally with Coinbase, Kraken and Gemini all trading at $3,180. Bitcoin could test the $3,000 level soon, with the current market making many investors frantic and eager to sell. The current sellout is the largest since July when the currency lost $3,000 in weeks causing traders to panic. With the weekend kicking off, it could drop further. Whether the currency can bounce back will largely depend on its ability to stay above the $3,000 support level. Bitcoin Is Dead – Teenage Millionaire As if the current turmoil isn’t enough for investors, a teenage Bitcoin millionaire has some more devastating news. According to Erik Finman, Bitcoin is dead. Finman believes that while it may not be immediate, it will slowly ebb away. He told MarketWatch: Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last. It may have a bull market or two left in it, but long-term, its dead. Finman began investing in Bitcoin in 2011 using money gifted to him by his grandmother. The early adopter grabbed the headlines last year after he turned his $1,000 investment into a $4 million fortune. However, he believes that those investors that are out to make millions as he did will lose their investment. And it’s not just Bitcoin. Finman believes that the future is even bleaker for Litecoin, the ‘silver to Bitcoin’s gold’. The currency is currently trading at $23, down 93 percent from its all-time high of $365. Litecoin has been dead for a while. It’s like when the sun is going down and there’s that eight minute period just before it goes dark. Litecoin is in its seventh minute. The post Bitcoin Sinks Below $3,200 as Teenage Bitcoin Millionaire Says Its Dead appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.