Bitcoin, Ethereum price surge likely as both will be option tradable soon

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ethereum, ethereum price

In what can be considered a boost to cryptocurrency, the U.S. Commodity Futures Trading Commission (US CFTC) has announced yesterday that they have approved digital currency-trading platform LedgerX for clearing derivatives thereby opening up the market to a larger customer base.

According to LedgerX they initially plan to clear the bitcoin options. Paul L. Chou, LedgerX CEO, said in a press statement that the company is seeing strong demand from institutions that previously could not participate in the bitcoin market due to compliance restrictions against unregulated venues. With bitcoin options launching as early as early Fall followed by ethereum options over the course of next few months, the two cryptocurrencies will finally enter the realm of federally supervised options.

This development is particularly encouraging because a whole new set of customers will be drawn towards the cryptocurrency market with some very large asset managers likely to enter the space giving a boost to bitcoin as well as etherum prices.

LedgerX has already received an order of registration as a Swap Execution Facility on July 6. LedgerX plans to start operations in New York and has already raised $11.4 million in a Series B round of financing to establish a regulated bitcoin options clearing house and exchange.

Read: Move over Bitcoin and Ethereum, Bitcoin Cash is here

The US CFTC also revealed that its Division of Clearing and Risk has issued a letter “exempting LedgerX from complying with certain Commission regulations due to LedgerX’s fully-collateralized clearing model.” Chou said the exemption was due to LedgerX’s plan to “not allow very leveraged trading.”

The authorization “does not constitute or imply a Commission endorsement of the use of digital currency generally, or bitcoin specifically,” the CFTC added in a release.

As of this writing bitcoin price hovered at $2670 while ethereum price has been stagnant at $220.

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