CME partner, Crypto Facilities, a trading platform for cryptocurrencies, declared the inclusion of bitcoin cash to its futures products list. The digital currency is ranked as the fourth biggest by virtue of market cap. The two companies struck an alliance last year, and that resulted in the launch of the bitcoin futures for the first time in December last year. Though the market has greeted the news initially, the interest towards the digital coin has waned on Monday.
The first bitcoin cash – US Dollar futures have started since Friday in the CME Group’s partner, Crypto Facilities, trading platform. The new product meant that traders and investors could either take a short or long position in the cryptocurrency to get more opportunities in terms of investment, as well as, risk management, coindoo.com reported. Before adding this, the exchange has already provided a futures contract for litecoin, ether, Ripple XRP, and bitcoin.
Crypto Facilities CEO, Timo Schlaefer, told media that “We are pleased to be expanding our cryptocurrency derivatives offering with the launch of BitcoinCash futures. BCH is a top five coin with a market capitalization of around $10 billion* and we expect our new contracts to spur the evolution of the crypto markets by bringing greater liquidity and transparency to the digital asset class.” The digital currency market is developing much like the share market where the futures contract is used for a number of stocks. Hedge funds and institutional investors prefer such products.
Following the addition of bitcoin cash into futures, there will be an expectation of more investors joining to trade in the virtual asset. This is the first regulated futures options by the FCA for the cryptocurrency and will allow professional investors to get them involved in the changing scenario. Their participation will allow the market to widen opportunities and at the same time hedge risk factors more effectively.
Reacting to the developments, Profluent Group CEO, Bert Mouler, said that Japan is happy to make markets in bitcoin cash derivatives. He said that there was a need for proper hedging mechanism for the institutional trading community enjoying a first-class management team. He cited that Crypto Facilities is the first cryptocurrency marketplace to offer such a service. This could probably set the tone for the other exchanges to start the service.
Innovative And Useful
Similarly, bitcoin cash association advisor, Roger Ver, said that the latest addition is one more example of how the virtual currency is moving ahead as the innovative and useful digital coin in the world. One of the biggest mining hardware maker, Bitmain, has also expressed its confidence in the cryptocurrency since it is one of the largest holders.
Though the digital currency market is undergoing pressures due to a variety of reasons currently, the move could be helpful sooner than later. Also, this is a key development to attract institutions once the custodian issue is sorted out. The regulatory ambiguity will clear a lot of issues to attract more investors and traders, who are waiting in the sidelines.