trueDigital, the product development group attached to trueEX, the first exchange approved by the Commodity Futures Trading Commission (CFTC), is planning to launch the industry’s first margined, physically-delivered Bitcoin (BTC) swap contracts.
In its announcement, trueDigital states that these new derivatives contracts have been self-certified by trueEX’s CFTC-regulated swap execution facility (SEF), opening a door for institutional investors looking to gain exposure to digital assets with physical delivery.
trueDigital notes that physical delivery is a key element of their product, as the prevailing method of cash-settled derivatives can cause issues when it comes to spot pricing given that the market is still susceptible to manipulation.
According to the announcement, the initial plans are to list contracts in the next three serial months and quarterly maturities. Settlement of the contracts will occur on the last Friday of each maturity month, and contracts can be purchased on margin, which is in stark contrast to Bakkt, the upcoming institutional investor-focused crypto exchange venture backed by Intercontinental Exchange, that is also releasing a physically delivered Bitcoin futures product this year.
trueDigital was initially created in March and formed the first market maker-based Bitcoin and Ether indices for institutional markets in July. trueEX has executed over $9.7 trillion in trading volumes across its various products.
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.