A lot of digital asset investors in the crypto space have been waiting for physically-settled Bitcoin futures for quite some time now. The physical Bitcoin (BTC) futures platform of Bakkt was the first to show interest in the market but has failed to launch. However, another rival has come up to beat Bakkt on its plan.
A competitor of Bakkt – LedgerX – was reported to have just launched the first physically settled Bitcoin (BTC) futures in the US. The firm is said to have launched the platform today and it is open to all investors based in the United States with an ID issued by the government. The platform is not limited to high-net-worth clients and institutional clients only, any US-based digital asset investor with a government-issued ID can use the platform.
This development will have a positive impact on the cryptocurrency market, as it would see the entrance of more institutional investors in the crypto space. Some analysts believe that the benefits that physical futures contracts will bring to the digital currency space come basically from the institutions that will trade them.
Bitcoin (BTC) Price Today – BTC / USD
LedgerX Beats Bakkt to Launch the First Physically Settled Bitcoin (BTC) Futures Contract – Cryptocurrency News Today – Cryptocurrency Market Update
The competition for launching a physically traded Bitcoin (BTC) futures contract is very high. Many firms are competing for regulatory permission and support to do that. At the moment, there are three major firms that are fighting to gain the attention of digital asset investors that want to trade physical Bitcoin (BTC) futures contracts. The three major rivalries are ErisX, LedgerX, and the ICE-backed Bakkt. One of the basic benefits of a physically settled Bitcoin (BTC) futures contract is that it lets investors collect and deposit Bitcoin (BTC) to trade the contracts directly without having to use a trading pair such as the US dollar or any other fiat currency. This helps to subvert the traditional system of banking completely.
This is a very important feature for decentralized currencies such as Bitcoin (BTC), with the assumption that it would one day be accepted as a universal currency when the time comes. Interestingly, it appears a lot of digital asset investors are very much interested in these futures contracts. According to an earlier report by LedgerX, several institutional investors have been asking for these futures contracts in the past.
Will Other Cryptocurrencies Benefit from the Demand of Physical Bitcoin Futures Contracts by institutions? – Cryptocurrency Market Update – Cryptocurrency News Today
The interest of retail investors in the digital currency market has been reducing recently. Although, some investors and analysts are watching closely to see the interest of institutions in the nascent markets, as they might be the next pioneers for the next massive bull run of Bitcoin (BTC) and other cryptocurrencies. According to a strategist at Fundstrat Global Advisors – Sam Doctor – Bakkt, one of the major rivalries of LedgerX, could be a major catalyst for an increase in institutional demand for BTC and other digital currencies.
However, it is currently unclear if the same effect would be seen as the LedgerX has beaten Bakkt to be the first to launch a physically settled Bitcoin (BTC) futures contract in the US. But it might eventually pay off on the market as it would attract and increase the interest of institutional investors.
At the moment, there is no evidence that the firm has been granted the requisite license to trade Bitcoin Futures. Has the company beat Bakkt to it or was it just a rumor fueled by the company?