The U.S market regulators have given a green signal to LedgerX. This approval has opened the gates to trade Bitcoin futures for the exchange. This new shift in the exchange’s portfolio is expected to bring in more growth and is being considered as a step towards the brighter future of the derivatives market.
Why this approval is such a big deal?
LedgerX achievement has also made other exchanges hopeful. We are calling this thing as an achievement because, in the past, it has been almost a pattern for the exchanges to wait during tedious and time-taking application processes, and for creating the market share.
What benefits will it bring around?
The result of this approval will have a good effect on the small retail investors of the United States, as they will be able to purchase derivatives which will pay out with BTC, the world’s largest crypto. In addition, LedgerX will be able to act as a designated contract platform. The exchange will now be able to offer BTC spot and ‘physically settled derivatives contracts.’ It will be offered to all kinds of retailers.
Further, there are plans to allow the U.S.-based and Singapore-based users to sign up for the trade. They can commence in July itself. The condition for this opportunity is that the investors will have to deposit a minimum of $10,000 in dollars or Bitcoin. Although in the next twelve months, the minimum deposit amount will zero down, as per Paul Chou, the Chief Executive Officer of the exchange.
BTC’s performance and the interesting coincidence of this approval with BTC derivatives-
Lately, there has been good growth in BTC market performance after the last dreadful crypto winter and the bearish market tendencies. Especially this year, the world’s largest crypto has been showing great sins of growth and potential for further success. For instance, recently, it has gone past $11,000 mark. On this, the Chief Executive Officer, Chou, says that the license will put the power in the hands of retailers, as they will now be in a position to directly invest. As per him, “[…] they will represent the majority of the market.” He thinks that it is the retail investors that are the real reason behind driving the prices of BTC to the level it is right now.
It is an interesting coincidence that the timings of the announcement of the approval and the timings of the major BTC derivatives exchanges are on a lookout for the institutional traders who are the driving force behind the trading volume in the market. As per Chou, the other exchanges are on and off about ‘six months behind LedgerX in gaining regulatory approval.” This, of course, will affect the access to Bitcoin derivatives.’ He further added- “We are way, way ahead of those test efforts.”
On the other hand, the exchange is also trying its luck on getting a green signal for trading tangible-settled futures and contract swaps in BTC, from the CFTC (Commodity Futures Trading Commission.) The approval will allow the exchange to freely cater to the retail investment industry in the U.S. as well as in Singapore.