Crypto Facilities from UK has been operating a futures market for the 3rd largest cryptocurrency, developed by Ripple Inc., for almost 18 months now. While CEO of Crypto Facilities, Timo Schlaefer, until recently, did not disclose information about this product, he believes that the quantitative indicators indicate that the wider distribution of derivatives based on XRP is possible. This is reported by Coindesk.
We have pretty good order books. And we're in the process of working with some of the large market makers to draw that further.
CEO, Crypto Facilities
While before the launch of futures for bitcoin in the US, several more months remained, Crypto Facilities, without creating excessive noise, entered into an agreement with Ripple and launched futures for XRP in addition to its own bitcoin futures, regulated by the UK Financial Supervision Authority.
Later, when CBOE and CME Group launched their first futures at the end of last year, the volume of trading in futures for XRP Crypto Facilities reached $ 14.2 million per month, and by the time of the expiration of the first CBOE futures - was already $ 24.6 million.
Nevertheless, few outside the company knew about the existence of this tool, and especially its scale.
The launch of XRP futures took place in October 2016, but the instrument did not cause much interest until April 2017. Then in one month the volume of trading increased more than 3 times and reached $ 3.08 million, and a month later - $ 12.1 million. Simultaneously with this the price of XRP raisd from $ 0.03 in April to $ 0.34 in mid-May, after which there was a significant decline.
However, in January 2018, in the volume of trading in futures again reflected the price of a digital asset, and the figure jumped to $ 24.6 million, while the price of XRP updated the maximum at around $ 3.53.
XRP Futures Trading Voume
Schlaifer argues that he has every reason to believe that the next crypto-currency instrument that will enter the broader traditional market will be tied to the XRP course. Information of Schlaifer can be supported also by the fact that Crypto Facilities took a direct part in creating the bitcoin index for the CME Group.
Although the representatives of the Chicago trading platform refused to comment on the situation, it is known that the CME Group participated in the B series of financing Ripple in 2016, when the startup attracted $ 55 million. Soon after, the former head of options for precious metals CME Group joined Ripple as head by XRP markets.
Responding to a request from the media, the representative of CBOE referred to last year's statement by the head of the exchange, who said that the company is ready to add new crypto-currency options.
CEO LedgerX also said that his company is interested in the possibility of launching XRP futures. However, this issue, he said, requires further elaboration, which is already being handled by a specialized group.
So, for example, it seeks to establish whether sales of large volumes of XRP are related to an attempt to manipulate the market, which may be especially important for futures, which will be calculated at fiat.