Crypto Startup LedgerX Eyes Ethereum Options, Awaiting CFTC Approval
In spite of the ever-tumultuous market, crypto investment services providers have continued to eye the expansion of their product lineup in a bid to entice prospective investors to allocate capital to this space.
LedgerX Ethereum Options Are On Their Way
Frank Chaparro, who has gained recognition for his crypto-focused Business Insider pieces, recently revealed that LedgerX, a leading New York-based cryptocurrency infrastructure firm, intends to introduce an Ethereum investment vehicle in the near future. Citing sources familiar with the firm’s business, Chaparro explained that the startup, which currently offers mostly Bitcoin-focused products and solutions, has plans to expand its options support to Ether, the second most valuable cryptocurrency by market capitalization.
While the product has reportedly been fully developed, LedgerX is still waiting on a regulatory green light from the American Commodity Futures Trading Commission (CFTC). Per insiders, it was revealed that the American regulatory body could review the Ether options application by as soon as October 5th, which is when the CFTC is scheduled to discuss this exact matter. Due to the fact that CFTC representatives have commended the cryptosphere on multiple occasions, many are hopeful that this product will receive a go-ahead the first time around.
Throughout the firm’s multi-year history, which stretches back to 2013, LedgerX garnered support for its Bitcoin vehicles, like the BTC options contract that was launched in October of last year. Since the establishment of BTC options and swaps, New York’s resident crypto company has purportedly brought on multi-billion-dollar hedge funds, family offices, and an array of other institutional investors.
So seeing the firm’s relatively extended history of success, it is only natural for the American startup to feel inclined to seek other opportunities in similar markets, which is just a hop, skip, and jump away in this scenario.
In the case of Ether, options linked to the crypto asset will allow traders to speculate on the future price of ETH, by giving an options contract holder an opportunity to buy or sell it at a predetermined price. As with any market, there are often two sides to the same coin, as LedgerX’s planned investment opportunity will allow pessimistic traders to short-sell Ether, which has become a common occurrence on BitMEX’s recently-established, controversial Ethereum perpetual swaps contract.
Regardless, this contract could open the door for the arrival of more investors in general, as many industry leaders claim that widespread adoption will occur following the creation of reliable cryptocurrency solutions, services, and most importantly, investment opportunities.
This most recent development comes just a few weeks after CBOE, the largest US-based options exchange by volume, revealed to Business Insider’s Chaparro that it had moved one step closer to launching an Ethereum-based futures contract. It is likely that the SEC’s clarification that Ether may not be classified as a security opened the door for the CBOE and LedgerX to start working on the aforementioned products.
Featured Image from Shutterstock
The post Crypto Startup LedgerX Eyes Ethereum Options, Awaiting CFTC Approval appeared first on NewsBTC.
Bitcoin Price Just Death Crossed, But Last Time Led To Historic China Pump
Wednesday March 25, 2020
Bitcoin price just formed a death cross of the 50-day and 200-day moving average, a sign that typically signals to investors that the asset in question is in an unhealthy state and could see...
Ethereum Turns ‘Sell’ After This Key Technical Breakdown
Monday March 23, 2020
Ethereum failed to continue above the $138 and $140 resistance levels against the US Dollar. As a result, ETH price declined below $130 and it is now trading in a bearish zone. Ethereum is...
The post Ethereum Turns ‘Sell’ After This Key Technical Breakdown appeared first on 12bitplay - Bitcoin Play.
The post Bitcoin Price Just Death Crossed, But Last Time Led To Historic China Pump appeared first on 12bitplay - Bitcoin Play.
These 3 Factors Show Bitcoin Has Further to Fall After Hitting $6,000
Sunday March 29, 2020
Over the past 24 hours, Bitcoin hasn’t performed too well. After maintaining the $6,700 support for a number of days, the cryptocurrency tanked on Friday evening in a move that shocked investors, falling as...
The post These 3 Factors Show Bitcoin Has Further to Fall After Hitting $6,000 appeared first on 12bitplay - Bitcoin Play.