Roger Ver-backed cryptocurrency exchange is purportedly set to provide physical Bitcoin futures contracts in Asia next month.
As reported by Coinwire in December, NASDAQ is confirmed to launch Bitcoin futures in 2019. NASDAQ’s commitment to launch in a specific time has not been established, but CoinFLEX, a cryptocurrency backed by Roger Ver is taking the lead.
Roger Ver and Trading Technologies Inc., together with a consortium, own Coin Futures and Lending Exchange (CoinFLEX). CoinFLEX used to be under UK Bitcoin exchange Coinfloor.
The co-founder of Coinfloor, Mark Lamb, will be the CEO of the new company, which is based in Hong Kong. According to a Bloomberg report, CoinFLEX is set to provide futures contracts for Bitcoin, Ethereum, and Bitcoin Cash. The contracts could be leveraged up to 20 times.
CoinFLEX will be competing with the big names in the industry, such as BitMEX, one of the largest cryptocurrency trading platforms and is also based in Hong Kong. BitMEX offers up to 100 times leverage on specific contracts.
One of the advantages of CoinFLEX, however, is that the futures traded on the exchange will be physically delivered. This means that when the contract expires, the contract owner will get the underlying asset and not be paid in cash.
Mark Lamb further elaborated:
“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. […] Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”
Another competitor, though, is also on the frontline when it comes to physically-delivered Bitcoin futures contracts. ICE’s Bakkt, which recently raised $182.5 million, will be CoinFLEX’s direct competitor as soon as its plans materialize.