BAKKT or CoinFLEX: Who makes the race to the first physical Bitcoin Futures?

the Coinfloor, the UK's oldest crypto-stock exchange, opened in Hong Kong with the spin-off CoinFLEX another options exchange for Bitcoin Futures. Thus, the company competes with large players such as BitMEX, and will soon have to compete with the BAKKT Futures. The Start of the operating business is announced for the beginning of February.

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9. January 2019TeilenFacebookTwitterLinkedInxingemail

The potential is huge: Bitcoin Futures apply – in addition to other regulated financial products such as ETFs as a key driver for the inflow of institutional money into the crypto market. Currently, the traded volume on the already-existent Futures markets with the trading volume of the underlying asset is still Bitcoin balance. In traditional markets, the Future volume exceeds the trading volume of the underlying, sometimes by a factor of 20; that is to say, the potential for Bitcoin Futures is huge.

This seems to be CoinFLEX to have the occasion for its market entry. The company that was formerly under the name of CoinfloorEX, an offshoot of the British Bitcoin exchange, Coinfloor, opened its options exchange in Hong Kong. This Chicago Business reported.

in February 2019, the business will start operating. In addition to the company shares, which are reserved for the mother company, Coinfloor, Bitcoin-Cash-Guru Roger Ver a non-closer-called share of CoinFLEX. For this reason, the option exchange offers futures contracts on BTC, but also on BCH and ETH. The exchange offers according to his own leverage products on referred to as the base values. Investors can lever their Investments accordingly, up to 20-fold.

David versus Goliath

The competition is huge. CoinFLEX will have to compete with market participants, such as BitMEX, or the Chicago Board Option Exchange (CBOE). First, investors can get their Investments up to a factor of 100 levers.

However, CoinFLEX hopes to be able to a unique feature of the competition: On the options market, investors do not have to leave the crypto-sphere. Because after the conclusion of the contract, the exchange delivers gains in the underlying crypto-currency. If investors do so, for example, a lever on Bitcoin claim, you will receive the achieved amount of not as is usual in Fiat (typically US dollars), but in BTC or Tether.

That CoinFLEX relies on the controversial Stable Coin Tether, surprised. In the past, it was always speculated about the allegedly inadequate solvency, the Stable Coins.

the Possible Concerns of investors were, however, unfounded, as Coinfloor founder Mark Lamb:

"Tether is the most liquid Stable Coin there is, and the solution of recent problems, and certifications by banks and external companies, makes us confident of it as a Stable Coin to use."

Physical Bitcoin Futures: Who does the race?

in order CoinFLEX occurs in the race for the first physical Bitcoin Futures. Currently, however, it seems as if the much-anticipated BAKKT Bitcoin Futures on the New York stock exchange operator Intercontinental Exchange, this race just for themselves can decide. Finally, the BAKKT are Futures for the 24. January, it was announced.

Under the surface, so much is happening in the Bitcoin Ecosystem. The market is growing up.