Seems like Futures for Litecoin (LTC) and Bitcoin Cash (BCH) are Quite Popular on Kraken Crypto Exchange
The subsidiary of Kraken Exchange- Crypto Facilities has observed that the volume of Bitcoin Cash BCH and Litecoin LTC crypto futures have risen recently, as per recent reports. The company has not witnessed such a rise in recent times.
Litecoin futures were released last year followed by the launch of Bitcoin Cash futures. The volume of these two futures was affected by Ethereum and Bitcoin, said Sui Chung. The beginning of 2019 saw Kraken taking over Crypto Facilities. This moves had a big impact on the market of Kraken. The impact resulted in a leap from USD 15 Million monthly to $100 Million for Litecoin. For Bitcoin Cash, it resulted in a growth of $10 million to USD 50 million. Overall there has been a growth of 400 percent in the volume of LTC futures and BCH futures. The current worth is approximately USD 150 million per month.
The growth can’t be credited solely to Kraken acquisition only. Chung explained that Crypto Facilities offers one of a kind- altcoins futures which are regulated in the market. During the contract, both the parties pay for the base asset, and the contracts are settled by cash. Actual cryptos are assured on the expiry of the contract. The uniqueness of these two futures poured in the strong demand from the investors.
However, not all the altcoins futures are enjoying this kind of success — for instance, Ripple’s XRP tokens. The demand for them is stable and not soaring as LTC and BCH futures. XRP has recorded growth but not like these two futures. The company since the acquisition by Kraken, on the other hand, has seen a rise of 500 percent in its volume.
If the growth continues like this, we might see a decline in the popularity of Bitcoin and Ethereum futures in volume. Since the commencement of this year, altcoins have been seen quite some growth unlike, Bitcoin which has been fairly stable. The stability may steer away from the investors who are so used to the growing graph of other altcoins.
The acquisition was quite recent and has resulted in a big impact on growth. So, one can expect further growth in LTC and BCH futures. Sui Chung is hoping for a big import of institutional money in the coming times to Kraken. Chung revealed that several institutional investors had contacted him for the last few weeks. These institutional investors are looking for safe means to invest in the crypto market. It is a great opportunity for Chung and the company overall to come up with solutions that meet the market demands. If Chung and the team succeed to attract the investors continuously, there is no stopping to the volume of these futures to go to newer heights.
Unlike the hype from 2017, these investors are driven by solid results. Yes, they are currently exploring and are in the initial stages of decision making; the results seem to be quite promising. This curiosity in the institutional investors should have a positive impact on the company’s growth. Chung, further explained, that these companies know what they are exploring. They have done their background study and are serious in exploring the investment options. As they will feel ready, they will prove to be the important pillars in the further growth of the company, Chung thinks.