A British cryptocurrency exchange is planning to enter the bitcoin futures market.
CoinfloorEX, a London-based exchange founded in 2013, announced Wednesday that it would launch bitcoin futures contracts next month, joining a number of other companies to offer such product to their customers, according to Reuters.
Notably, unlike some of its competitors, Coinfloor will offer physically settled futures contracts, the wire service reported, meaning when the contract is set to expire, the actual asset being traded will be delivered (in this case, bitcoin). The bitcoin futures contracts offered by CME and Cboe are cash settled, and do not deliver bitcoin to the contract’s owners.
The product came in response in part because of demand from some of the exchange's customers, Coinfloor co-founder Mark Lamb told Reuters. He explained:
Similarly, several senators requested further information about the CFTC's oversight of such products, noting that taxpayers should be protected from "fraud, manipulation and abusive practices in the futures and options markets."
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