CoinFLEX, a new cryptocurrency exchange backed by Bitcoin Cash (BCH) advocate Roger Ver, is reportedly planning to launch physical cryptocurrency futures next month that will be available exclusively in Asia.
According to a recent report by Bloomberg, CoinFLEX started as CoinfloorEX, a unit of the Bitcoin exchange Coinfloor, the UK’s oldest Bitcoin exchange. Starting next month, the exchange plans to offer futures contracts for Bitcoin, Bitcoin Cash and Ethereum with to 20x leverage.
All CoinFLEX contracts will trade against Tether (USDT), meaning that at contract expiry, investors who are short will deliver the shorted coin and receive Tether, and vice versa for longs. The exchange is also exploring contracts for USD Coin (USDC), the stablecoin co-developed by Coinbase and Circle.
The move into the derivatives market will likely put the venture in direct competition with Bakkt, an upcoming crypto exchange backed by Intercontinental Exchange (ICE), and ErisX, a regulated crypto derivatives exchange that is planning to offer digital futures and spot trading.
“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,” said CoinFLEX CEO Mark Lamb. “Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”
With Ver’s backing, Lamb believes CoinFLEX can become the largest trading venue for Bitcoin Cash derivatives. This comes several months after Ver revealed he is currently exploring ways to acquire or launch his own exchange as part of a plan to boost liquidity for Bitcoin Cash.
Photo: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.