It's being reported by Chicago Business that CoinfloorEX, previously a branch of UK's oldest Bitcoin exchange, Coinfloor, has changed its name to CoinFLEX and intends to offer Bitcoin Futures contracts that it hopes will compete with similar productes coming soon from the NYSE and Bakkt.
CoinFLEX stands for Coin Futures and Lending Exchange and will be owned by a consortium which will include famous Bitcoin Cash advocate Roger Ver. In addition, Coinfloor will still maintain a stake as well.
The exchange will be managed from Hong Kong and will operate not unlike BitMEX, offering futures contracts for Bitcoin, Bitcoin Cash and Ethereum with up to 20x leverage. The major difference will be that these contracts will be physically settled, which means payouts will be in the form of the actual cryptocurrency, not fiat.
Mark Lamb, a co-founder of Coinfloor, is quoted in the article:
"Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that’s holding back that growth is the lack of physical delivery... Volumes are reduced because of a problem of trust when it comes to cash-settled trades."
It should be noted that the futures will be traded against Tether. Though a couple months ago Tether did have some controversy, this seems to be dying down and to this end, Mark Lamb had this to say:
"Tether is the most liquid, highest volume stable coin that exists right now and seeing the resolution of recent issues and attestations by banks and outside firms make us confident in using it as a stable coin."
Will these futures be able to compete with the big institutions? Will this help trigger the next bull run? Stick with Chepicap for any andall updates!