London-based crypto exchange CoinfloorEX, founded in 2013, announced bitcoin futures launch. The launch of the first contract should take place next month. This is reported by Reuters.
It is noteworthy that, unlike the products of competitors, the contracts of CoinfloorEX will be provided on terms of physical calculations, that is, all payments will be made in bitcoins. Futures of CME and CBOE provide all calculations in fiat.
Co-founder of CoinfloorEX Mark Lamb explained that the decision to create the product was made in response to the numerous requests of the clients of the trading platform.
When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges.
Many trading companies and large investors fear that futures that are being traded in fiat can be an easy target for manipulation, since intruders can affect the price of the underlying asset in order to achieve the desired result, Lamb explained.
Thus, CoinfloorEX will be at least the fifth site that launched bitcoin futures, joining Bitmex, CryptoFacilities, CME Group and CBOE.