LedgerX Will Launch Ether Options

Cryptocurrency Derivatives Platform LedgerX Will Launch Ether Options

Institutional bitcoin derivatives stage LedgerX is allegedly preparing to expand its own cryptocurrency product lineup to add ether, the indigenous advantage of Ethereum.

The U.S. company, which has been the very first trading platform to get approval by the Commodity Futures Trading Commission (CFTC) to record bitcoin derivatives, has developed a line of ether choices and is about to roll them out after it receives the go-ahead from regulators, business novel The Block reports.

While LedgerX hasn’t confirmed the information openly, the report cites a source familiar with the firm who says the rollout could adhere to a CFTC assembly on Oct. 5, even if authorities in the agency are adequately familiar with this product.

At the moment, the firm provides next-day swaps, which can be basically one-way futures settled at”bodily” bitcoin, and choices, which enable traders to buy the right to purchase or sell an asset at a specific price for an agreed-upon stage later on. It needs to create these products available for ether, also.

Significantly, these choices would enable traders to brief the ethereum price, making what is called a two-sided marketplace for its second-largest cryptocurrency. While the development of ethereum derivatives can cause short-term price decreases — a few study has linked this year’s cryptocurrency market decrease into the initiation of the first controlled bitcoin futures they arguably bring about more efficient price discovery, which might assist in creating associations more comfy with cryptocurrency within an asset category and ether as a single token.

If LedgerX does deliver a ether product to advertise, it probably won’t be long until CBOE — which will be on record expressing its desire to add more cryptocurrency products — lists a ethereum futures contract too. CME, as BMI reported, has published an ether price indicator but was more guarded on its future strategies for its cryptocurrency.

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