Bitcoin
$41,731.99+5.41%
Ethereum
$2,226.86+3.25%
Binance Coin
$227.40+2.16%
XRP
$0.62121420+0.37%
Solana
$61.04-2.58%
Cardano
$0.40135931+2.90%
Dogecoin
$0.08841210+5.05%
Tron
$0.10325205-6.94%
Chainlink
$15.67-1.01%
Avalanche
$21.57-0.12%
Polygon
$0.79516820-1.08%
Polkadot
$5.50+1.55%
PlayIconNav
Crypto Prices CoinDesk Market Index CoinDesk Market Index
Markets

Bitcoin Derivatives Firm ErisX Adds Cash-Settled Contracts After Physically Settled Futures Fall Flat

Cryptocurrency derivatives platform ErisX launched cash-settled bounded futures on Tuesday.

By Nate DiCamillo
AccessTimeIconDec 1, 2020 at 3:17 p.m. UTC
Updated Sep 14, 2021 at 10:36 a.m. UTC
ErisX CEO Tom Chippas

Thomas Chippas, chief executive officer at ErisX

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency derivatives platform ErisX launched cash-settled bounded futures on Tuesday, after seeing little interest from the market for its physically settled futures. 

ErisX CEO Thomas Chippas said the company had released physically settled futures thinking traders would be interested in trading spot bitcoin with the protection of a futures exchange and a futures clearinghouse. Cash-settled contracts don’t require the delivery of bitcoin like physically settled contracts, allowing investors who can’t touch bitcoin to still profit from it.

Physically settled futures won’t become more popular until the exchange can offer physically traded futures on margin, Chippas said. ErisX is working with the U.S. Commodity Futures Trading Commission (CFTC) to allow the exchange to offer margin in the future.

In the meantime, the exchange is launching cash-settled bounded futures, which provide upper and lower bounds on gains and losses, protecting investors from large price movements 

Cash-settled futures have been trading in the U.S. since 2017, when CME and Cboe launched their own products, though Cboe discontinued its bitcoin futures in 2019.

Last month, ErisX got CFTC approval to offer additional trading services.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.