LedgerX to Release Ether Futures, Reports Indicate
Other stakeholders in the market are expected to follow suit and roll out ether products.
Is LedgerX Planning To Launch Ether Futures
Reports indicate that Ledger X is planning to add ether to its crypto product base. LedgerX is an institutional derivative backed by bitcoin. Ledger X was the first exchange platform that got an approval from CFTC to have bitcoin derivatives. The platform has set up a number of ether products awaiting a green light from regulators for launch.
At the moment, LedgerX is yet to issue a statement about the rumours. Sources indicate that an insider revealed that the market rollout will come after a meeting with CFTC. The meeting will take place early next month. However, the product can only be released if authorities are satisfied.
Next month will mark exactly a year when LedgerX started to issue bitcoin derivatives. The rollout came shortly before bitcoin futures were issued by CME and CBOE.
LedgerX current mode of operation is that it provides next-day changes In simple terms, they are providing daily contracts that are settled in physical bitcoin and a number of options. These options enable clients to buy the node to exchange an asset at a given price. With the current reports, it means that LedgerX seeks to make a similar product anchored on ether.
It is key to highlight that the options will enable traders to lower the ethereum value. In return, it will create a double sword market for ethereum. The emergence of ethereum derivatives will cause a temporary price decline. This is backed by recent researches on the market decline experienced for the best part of 2018. It was alleged that roll out of bitcoin futures was responsible for the price drop. They lead to the discovery of prices. Investors and miners can explore this option to hedge gains and lower risks linked with price volatility.
If the reports are true, LedgerX will be followed by other players in the market. It is expected that CBOE will roll out its own ether futures too. The firm has in the passed shown desire to unveil additional crypto products. For CME, it has remained tight-lipped over its future under ethereum. CME has made public ether value index.