U.S cryptocurrency investors today welcomed the first regulated physically delivered Bitcoin futures product, following an announcement by LedgerX that their new platform is live.
As Stmarket.co reported last month, LedgerX received approval from the U.S Commodity Futures Trading Commission (CFTC) for the new product and has now launched in line with their schedule.
The company’s Chief Operating and Risk Officer Juthica Chou had said then that ‘there’s no doubt that [LedgerX] was looking to be first, and the incumbent.’
Today, an announcement on the firm’s official Twitter account read,
“It's official: we're live with retail trading on Omni!”
Notably, LedgerX's new product differs from the Bitcoin Futures contracts launched in late 2017 by Cboe Global Markets and CME Group. While the latter two pays investors cash at the expiration of their contracts, the new offering by LedgerX would release payouts in actual Bitcoins instead of cash.
However, there are restrictions to LegderX’s product at the moment since only U.S/Singapore customers can invest in the product. There is also the requirement of a minimum deposit of $10,000 or 1 BTC (worth $9961 at press time) before users can trade futures contracts on Omni.
Meanwhile, LedgerX’s new landmark, as mentioned earlier means that the startup is now the first to offer physically delivered Bitcoin futures contracts, despite several other companies being in the run in to launch similar products.
Barely a week ago, Intercontinental Exchange backed crypto startup, Bakkt began testing its Bitcoin Futures platform while ErisX, another firm pursuing the same course recently obtained approval from the U.S CFTC.