London-based cryptocurrency exchange Coinfloor has announced the launch of a cryptocurrency futures exchange, CoinfloorEX.
According to the official release, CoinfloorEX will offer “physically delivered” cryptocurrency futures contracts, which will protect investors and traders against price slippage on positions at time of settlement, as well as market manipulation concerns.
Coinfloor said that the first physically delivered contract will launch next month and will be for physical delivery of Bitcoin (XBT).
“Settlement is based on physical delivery rather than an index price from across other exchanges, which provides maximum pricing transparency. Access to Coinfloor’s spot exchange enables investors to easily convert Bitcoin to Fiat currency post-physical delivery, creating opportunities for longer-term currency appreciation or through meeting Bitcoin-denominated obligations,” it said.
CoinfloorEX is aimed at hedge funds, traders, sophisticated investors and miners and will allow them to tap into the financial potential of bitcoin at scale.
“Numerous market participants are calling on existing cryptocurrency exchanges that provide futures contracts to switch from cash to physical settlement. However, making that transition will be very difficult for them to achieve. We understood this requirement from the start, and have worked for over two years to bring this functionality to market. Now, institutional investors and traders can capitalise on market dynamics, within their own risk parameters and in line with their individual trading strategies”, Obi Nwosu, CEO of Coinfloor , said.
Chicago Board Options Exchange (CBOE) and CME Group officially launched their bitcoin futures contracts in December 2017. XBT futures offered by both CBOE and CME are cash-settled.
