The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Crypto Milestone: Anyone in the US Can Now Buy the First Physical Bitcoin Futures – From LedgerX, Not Bakkt

by Daily Hodl Staff
July 31, 2019
in Bitcoin

Editor’s note 8/1/2019: LedgerX has deleted a tweet of the report on CoinDesk announcing that the company has launched the first physically-settled Bitcoin futures contracts in the US. In a statement received by CoinDesk Thursday, “the U.S. Commodities Futures Trading Commission (CFTC) says LedgerX has ‘not yet been approved by the Commission’ to offer physically settled bitcoin futures, contradicting the company’s claims.”

New York-based LedgerX, a CFTC-regulated cryptocurrency asset management platform that offers a spot and options exchange for Bitcoin, has launched the first physically-settled Bitcoin futures contracts in the US. Anyone in the US with a valid ID who can pass know-your-customer (KYC) can trade.

The company’s new Omni platform is now live for retail traders and emails sent to the platform’s preliminary traders who signed up for the waitlist late last year are now circulating.

CEO Paul Chou tells CoinDesk,

“It’s going to make available to the retail public all sorts of ability to trade Bitcoin, whether it’s spot, futures, options and we have a lot of things in the pipeline.”

Unlike retail traders, institutional clients will use LedgerX’s other products to trade Bitcoin futures.

LedgerX’s announcement eclipses highly-publicized efforts made by Bakkt, the upcoming crypto platform from the Intercontinental Exchange, to launch the first physically-settled Bitcoin futures. Bakkt is currently facing another regulatory hurdle in New York.

LedgerX has also leapfrogged over Chicago-based ErisX, backed by TD Ameritrade, Pantera Capital and ConsenSys, among others.

ErisX was also recently granted a clearinghouse organization (DCO) license by the U.S. Commodity Futures Trading Commission (CFTC) earlier this month in the run-up to its own upcoming physically-settled Bitcoin futures product.

Says Chou of LedgerX’s new product,

“Not only are they delivered physically in the sense that our customers can get Bitcoin after the futures expires, but also they can deposit Bitcoin to trade in the first place. Cash-settled is cash-in and cash-out, we’re Bitcoin-in and Bitcoin-out.”

Bitcoin’s use as collateral for a futures contract marks a milestone for a CFTC-regulated company. It will eliminate the time needed for customers to wait for bank transfers and ACH deposits to fund their accounts.

“If you imagine somebody that deposits Bitcoin, they would not have to use the U.S. banking system at all. That’s why physically-settled is very important. I think [it’s] one of the most unique use cases for Bitcoin, where you’re using cryptocurrencies as the only collateral.”

“As a digital commodity, Bitcoin trades 24/7/365 and our customers expect that from us, so if you trade Sunday night, the banking system did not have to be open.”

Retail customers will need a $10,000 wire or 1 BTC to open an Omni account.

Chou’s push into retail involved educating the CFTC.

Says Chou,

“We’ve been involved in this business for the last six years and we have not only been getting institutions on board but we’ve spent a lot of time educating regulators on why this is important.”

“Cryptocurrencies are for everybody and we never started this looking to offer just to hedge funds or institutional clients.”

Crypto enthusiasts have long speculated on the market impact of a CFTC-regulated, physically-settled Bitcoin futures contract. While it signals to the industry that the asset class, alongside stocks, bonds and securities, has reached a certain level of maturity by taking on characteristics of the legacy financial system, the path forward is unchartered.

Covering the emergence of the parallel financial system for Forbes, 22-year Wall Street veteran Caitlin Long writes,

“A parallel financial system is forming outside the incumbent financial system, and institutional investors are ‘financializing’ it as they enter. The new system is based on cryptocurrencies—natively-digital assets that are exclusively issued, traded and settled on open blockchains. Cryptocurrencies are not like other financial assets, so historical precedents provide little help in predicting their financialization path.”

Bitcoin is currently up 4% at $10,044.

[the_ad id="42537"] [the_ad id="42536"]
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Radix Babylon Upgrade Marks New Era for Web 3.0 User and Developer Experience
    September 28, 2023
  • Tyrion Set To Decentralize the $377 Billion Digital Advertising Industry
    September 25, 2023
  • Hydranet Launches Layer Three Dex – A Game Changer for Trustless Cross-Chain Trading
    September 25, 2023
  • Ottochain Homage to EVMOS and Ethereum Layer Two
    September 21, 2023
  • Algorand Foundation Announces Build-a-Bull Hackathon in Collaboration With AWS
    September 20, 2023
  • OKX Achieves SOC 2 Type II Certification, Demonstrating Its Industry-Leading User Safety, Security and Compliance Standards
    September 20, 2023
  • Dexalot Unveils SimpleSwap and SimpleView Features for Enhanced User Experience
    September 19, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$28,402.61
$28,402.61
4.4%
Ethereum
$1,720.93
$1,720.93
1.91%
Cardano
$0.26758
$0.26758
2.02%
XRP
$0.522638
$0.522638
0.46%
Dogecoin
$0.063375
$0.063375
0.94%

Spotlight

  • Bitcoin Flashing Relative Strength Against Stock Market Despite Deteriorating Macro Conditions: Analytics Firm
    September 25, 2023
  • Many Altcoins Won’t Recover After Massive Collapse, Says Crypto Analyst Benjamin Cowen – Here’s His Forecast
    September 25, 2023
  • Here’s When Bitcoin (BTC) May Print the Top of Its Post-Halving Bull Run, According to Crypto Strategist
    September 25, 2023
  • Ex-Goldman Executive Says Liquidity Injection Will Ignite Explosion in Crypto Space Amid Rapid Building
    September 25, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash • Financeflux •
Industry Announcements

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl