The crypto markets are continuing to grow and develop by leaps and bounds each day, and the latest piece of positive news that elucidates just how rapidly the markets are maturing is the Commodity Futures Trading Commission’s decision to approve LedgerX for offering physically settled Bitcoin futures contracts.
The announcement, which was made by the CFTC earlier today, has sparked excitement in the crypto community, and many investors are now noting that this could help add fuel to the current Bitcoin bull run, which may allow it to climb significantly higher.
CFTC Approval of Bitcoin Derivatives Trading is “Great News”
Earlier today, the CFTC released an approval notice on their website, noting that LedgerX is now able to offer Bitcoin futures contracts to US-based residents that meet certain account minimums. Importantly, these contracts are open to all eligible retail clients, and are not limited to institutional investors.
“The Commodity Futures Trading Commission (CFTC) announced today that it has approved the application of LedgerX LLC (LedgerX) for designation as a contract market,” the CFTC said.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, spoke about this news in a recent tweet, deeming the approval of Bitcoin derivative trading as “great news” for the markets.
“Great news: 24/7 bitcoin derivatives trading will soon be available for US residents. Minimum account size of $10K or 1 BTC,” he noted.
Great news: 24/7 bitcoin derivatives trading will soon be available for US residents. Minimum account size of $10K or 1 BTC. https://t.co/5OnAnEsCvA
— Alex Krüger (@krugermacro) June 25, 2019
LedgerX first began the process of receiving approval for a “designated contract market (DCM)” in November of 2018, and due to several issues with the nascent nature of the crypto markets, it was likely an arduous process.
Will the Approval of Physically Settled Derivatives Lead to a BTC ETF?
It has long been hypothesized that the approval of a Bitcoin ETF would allow the markets to surge past their previously established all-time-highs, but a deluge of regulatory concerns has thrown a wet towel on hopes surrounding this possibility.
Although the approval of LedgerX’s physically-settled Bitcoin derivatives product may not directly translate into a BTC ETF, it may ultimately help clear up some regulatory issues that are stopping an ETF from being approved.
One cryptocurrency investor discussed this possibility in a recent tweet, explaining that he believes the news surrounding LedgerX will add momentum to the current bull market cycle.
“Whoah! Big step in the long haul towards the coveted Bitcoin ETF. Another block of momentum added to the beginning of the bull market cycle,” Dylan Grabowski said.
Big step in the long haul towards the coveted Bitcoin ETF.
Another block of momentum added to the beginning of the bull market cycle. https://t.co/ksmeDr2TMl
— ????ℕ ?ℝ?₿????? (@GrabowskiDylan) June 25, 2019
Although it remains unclear as to whether or not the CFTC’s approval of LedgerX’s Bitcoin futures product will actually provide kindling that helps fuel the crypto market’s upwards momentum, it is certainly a sign of rapidly growing market maturity.
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