UK-based cryptocurrency exchange operator Coinfloor is going to launch a futures exchange for digital assets that will include the first physically delivered bitcoin futures contracts in April 2018.
During the Futures Industry Association’s annual conference in Florida, Coinfloor’s co-founder Mark Lamb announced that the exchange would shortly present a new London-based trading platform, known as CoinfloorEX.
CoinfloorEX plans to deliver its services to hedge funds, proprietary trading firms, and sophisticated retail investors.
Talking to Reuters Mark Lamb showed his concerns over bad market players who will manipulate easily with “the price of the indexes or auctions on spot exchanges that set the futures prices in their favor”.
“When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges,” he said.
The difference of CoinfloorEX from more traditional futures exchanges, as The Chicago Board Options Exchange and CME Group Inc, is that they will deliver the underlying asset, bitcoin, upon the futures’ specified delivery date.