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UK Crypto Futures Exchange Adds Bitcoin Cash Contract

Crypto Facilities, the U.K-based crypto futures exchange and CME Group partner, is adding a bitcoin cash product to its offerings.

The firm announced Friday that it was launching the contract on its platform, which is regulated by the U.K. Financial Conduct Authority. Trading of the bitcoin cash future will begin at 4 p.m. British Standard Time (BST).

The contract joins the company’s existing bitcoin, ethereum, XRP and litecoin futures contracts. Investors can take long or short positions on bitcoin cash, “allowing them to broaden investment opportunities and hedge risk more effectively,” according to the company.

Crypto Facilities CEO Timo Schlaefer told CoinDesk that “bitcoin cash is a top-five cryptocurrency by market cap so it was a logical next step to add BCH to our BTC, ETH, XRP and LTC futures offering.”

Schlaefer predicted that the offering would be popular with its customers, based on past interest in its other crypto futures, going on to say:

“We have seen volumes as high as $180 million in a 24-hour period and have average daily volumes ranging from $20–60 million notional per day. We expect BCH to be as successful as our BTC, XRP, ETH and LTC futures that all trade in significant volume.”

“Since 2015 we have seen a steady increase in volume in the cryptocurrency derivatives space, with the past year seeing the highest growth so far,” he added.

While Crypto Facilities does not have a U.S. branch, the firm partnered with CME Group to launch the latter firm’s bitcoin futures contract last December.

To that end, Crypto Facilities powers two bitcoin price indexes – the CME CF Bitcoin Reference Rate and CME CF Bitcoin Real Time Index – that underpin CME Group’s futures product.

Graph image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Top U.K Firm to Launch Litecoin (LTC) Futures

Back in mid May, Ethereum (ETH) Futures were launched by top U.K trading firm, Crypto Facilities. The same firm is now planning on offering Litecoin (LTC) futures. The report by CoinDesk indicate that the official announcement has not been made but the new investment product on the platform will be available as early as Friday, June 22nd.

The report also indicated that the new product will be offered against the United States Dollar on the platform. Investors will be able to long or short future contracts with Litecoin as the underlying asset as collateral.

The CEO of Crypto Facilities was quoted in the report as saying that:

We believe our LTC-dollar futures contracts will increase price transparency, liquidity and efficiency in the cryptocurrency markets.

However, news of any crypto based futures contracts have been met with mixed reactions by the crypto community for quite some time now. Referencing the past performance of Bitcoin when BTC Futures were offered by CBOE and CME back in December, many of the same crypto traders believe that the BTC futures are the cause of the current decline of Bitcoin to current low levels. Back in December, BTC reached levels of $20,000 only to start a decline the next day after BTC futures were offered by CBOE and CME. BTC continues to decline to this day and is currently trading at $6,662 at the moment of writing this.

The thought of offering Ethereum (ETH) contracts by CBOE was further explored by Ethereum World News when it listed the advantages and disadvantages of such a product after ETH was let off the hook by the SEC.

The first advantage of any crypto-based futures product, is the obvious feel by regular stock market investors, that digital assets are a formal means of investment. These Futures products legitimize the digital asset that backs them. This will then bring the institutional investors en masse into the crypto-verse leading to another rally similar or greater than the one experienced last December.

Two disadvantages of Ethereum futures by CBOE were also noted in the report by Ethereum World News. The first being that the price of Ethereum would enjoy a rally then a decline as was the case with Bitcoin. The second was that traders will learn from the case of Bitcoin, and short Ethereum. Shorting ETH means that the traders would flood the market with Ethereum and further cause a price dip.

In conclusion, the Litecoin futures are a welcome addition to the current products of XRP and BTC futures on the Crypto Facilities platform. Litecoin now gathers legitimacy as a viable investment option for regular stock market traders. Only time will tell of the impact such products have on the price of Litecoin in the future.

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A UK Exchange Is Launching Litecoin Futures Trading

U.K.-based cryptocurrency futures trading platform Crypto Facilities is launching a litecoin (LTC) derivative product.

According to an announcement on Wednesday, the new U.S. dollar-denominated service will go live on Friday, June 22, and will allow investors to long or short futures contracts that have litecoin as the underlying collateral, with weekly, monthly and quarterly maturities.

Timo Schlaefer, CEO of Crypto Facilities, said the decision is a result of having received “strong client demand” for litecoin contracts. “We believe our LTC-dollar futures contracts will increase price transparency, liquidity and efficiency in the cryptocurrency markets,” he said.

Litecoin creator Charlie Lee commented in the announcement that, by opening up litecoin trading to more institutional investors, the new product would increase the cryptocurrency’s liquidity and “make it easier for people to get in and out of litecoin.”

The move comes just a month after the firm launched ethereum-based futures contracts and marks a new addition to several crypto-based derivative products that are already being traded on the platform, including bitcoin and XRP, the native token of the Ripple protocol.

In an email response, Crypto Facilities told CoinDesk that the firm is expecting the trading volume of its ethereum futures contracts to reach around $150 million in this quarter, accounting for around 10 percent of the platform’s total.

Litecoin image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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CME Group Partners to Launch Ether Reference Rate Index

Derivatives exchange operator CME Group is launching an ether reference rate and a real-time ether-dollar index in partnership with UK-based digital asset trading service Crypto Facilities.

The operator noted Monday that it would provide “a daily benchmark price in U.S. dollars” every 24 hours, as well as the real-time price “based on transactions and order book activity” from cryptocurrency exchanges Kraken and Bitstamp, according to a press release. The rates are already available online on both the CME Group and Crypto Facilities websites, and will be provided to the CME Group Market Data Platform starting June 4.

In a statement, CME Group managing director and global head of equity products and alternative investments Tim McCourt said “the Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace. Providing price transparency and a credible price reference source is a key development for users of ethereum.”

Similarly, Crypto Facilities CEO Timo Schlaefer said:

“Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts. We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time Ether-Dollar price.”

The new indices will be overseen by the Bitcoin Oversight Committee formed by CME Group, Crypto Facilities and other industry participants, according to the release. This “oversight committee will regularly review the methodology, practices and standards to protect the integrity of the reference rates.”

The news comes just days after Crypto Facilities began trading in ethereum futures, as previously reported by CoinDesk. The platform announced it was launching the first futures contract for the token through a regulated platform on May 11.

Crypto Facilities notably provides CME Group with reference rates for the latter’s own bitcoin futures.

Ethereum image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Ethereum (ETH) Futures Are Live and Could Be Key To $2,500 Per ETH By End Year

In a press release on the 11th of May, UK based Crypto trading platform, Crypto Facilities, launched Ethereum (ETH) Futures to bring greater efficiency and liquidity to the crypto markets. The new derivatives started trading on the platform as of 4pm UK time on the day of the announcement.

This means Crypto Facilities has 4 Crypto Futures products that include Bitcoin (BTC), Ripple (XRP) and now Ethereum. Ripple is the only asset with an extra product of Ripple to Bitcoin Futures on top of XRP/USD futures. This then adds up to 4 crypto futures products as earlier mentioned.

But what exactly is a Futures contract?

In traditional Stock market trading, A Futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, depending on the underlying asset being traded, detail the quality and quantity of the commodity.

How will this move aid Ethereum’s value in the markets?

On May 1st, Ethereum World News had reported of a $2,500 Ethereum price prediction by the end of 2018 that was made by Nigel Green, founder and CEO of deVere Group. This is due to the fact that Ethereum has emerged as the platform of choice for new token issuers due to its efficient and popular smart contract capabilities. This means that once scalability is solved through sharding, Ethereum is sure to obliterate the competition in this aspect of the industry.

The same sentiment of the increasing popularity of Ethereum is the reason Crypto Facilities decided on creating the new derivative of ETH futures. The CEO of Crypto facilities, Timo Schlaefer, had this to say about Ethereum in the announcement aforementioned:

Ether is the second most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. The Ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.

This is good and bullish news about Ethereum: the King of Smart contracts.