LedgerX Receives CFTC Approval to Offer Physical Bitcoin Futures

Wilfred Michael 

Wilfred Michael

News reporter

25 June 2019,
17:19
LedgerX Receives CFTC Approval to Offer Physical Bitcoin Futures

The United States Commodity and Futures Trading Commission (CFTC) said in an announcement today that it has approved an application by Bitcoin Futures startup, LedgerX to exist as a contract market.

The regulatory approval means that LedgerX now has designated contract market (DCM) license, which allows it to offer physically settled Bitcoin Futures.

In other words, the company can now offer Bitcoin Futures contract that would be settled with real Bitcoin when it expires instead of the cash facilities offered by existing futures markets — Chicago Mercantile Exchange (CME) Group and Chicago Board and Options Exchange (CBOE) Group.

With the approval too, LedgerX now can offer its Bitcoin Futures not only to institutional investors who usually represents the broader market but also to retail investors buying small volumes.

However, LedgerX at press time has not revealed a timeline regarding when it would potential begin offering investors physically settled Bitcoin Futures contract.

The company’s Chief Operating and Risk Officer Juthica Chou only told Coindesk that the company would introduce the offering soon.

She reportedly said,

“There’s no doubt that we’re looking to be first, we’re looking to be the incumbent. We think we’re better positioned and we want to be there to serve customers of all sizes.”

Meanwhile, the CFTC approval effectively brings to an end race for which company would be the first to offer physically settled Bitcoin Futures contract for U.S investors.

Other startups that were formerly in the running include SeedCX, ErisX, and notably, Bakkt which we reported earlier is set to begin user-testing next month.

 

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