A British cryptocurrency exchange has launched what is thought to be the world’s first Bitcoin Cash futures contract offered by a regulated provider.
The derivative started trading at 4pm on August 17.
The Bitcoin Cash/US dollar contract lines up with futures trading alongside similar products for Bitcoin, ripple XRP, Ether and Litecoin offered by Crypto Facilities.
The futures contract allows investors to bet on Bitcoin Cash prices.
Timo Schlaefer, chief executive of Crypto Facilities, said: “We are pleased to be expanding our cryptocurrency derivatives offering with the launch of Bitcoin Cash futures. Bitcoin Cash is a top five coin with a market capitalisation of around $10 billion and we expect our new contracts to spur the evolution of the crypto markets by bringing greater liquidity and transparency to the digital asset class.”
How the futures work
Crypto Facilities is regulated by the UK’s Financial Conduct Authority.
Futures allow investors to take a long or short position on the value of Bitcoin Cash after depositing a margin in Bitcoin or Ripple XRP.
The contracts last a week, month or three months, but investors can exit the contract by trading out when they like.
Profluent Japan, based in Tokyo, is also taking part in the Crypto Facilities futures market.
Chief executive Bert Mouler said: “Profluent Japan welcomes the opportunity to make markets in BCH derivatives on the Crypto Facilities platform. The institutional trading community needed a proper Bitcoin Cash hedging mechanism at an FCA-registered exchange with a first-class management team. Crypto Facilities is the first to provide such a service.”
Innovative and useful cryptocurrency
Excitement about the launch has spread around the world, with trade body the Bitcoin Cash Association suggesting the futures move will reinvigorate the coin’s standing in the world market.
Roger Ver, an adviser with the group, said: “This is another example of how Bitcoin Cash is proving itself to be one of the most innovative and useful cryptocurrencies in the world.”
Bitcoin Cash is currently trading at $543.17 with a market capitalisation of $9.36 billion.
The cryptocurrency was launched in August 2017 by developers wanting to improve Bitcoin’s block size by taking a hard fork from Bitcoin’s blockchain.