Bitnomial has become the latest cryptocurrency exchange to receive approval from the US Commodity Futures Trading Commission (CFTC) for offering Bitcoin futures and options. Announced on Monday, the derivatives contracts will be margined and physically delivered, meaning traders will receive Bitcoins after the settlement of the contract.
Though the launch date of derivatives trading is not set yet, the exchange will initiate user acceptance tests (UAT) for trading and delivery later this month.
“We are building the Bitcoin Product Complex, a suite of interrelated financial products, starting with quarterly Bitcoin futures, micro futures, and options. Additionally, our products initially trade on 37% margin and are settled on-chain instead of book entry.”Luke Hoersten, founder and CEO of the exchange had stated.
Demand for Bitcoin derivatives is surging in the leading markets, but for the exchanges to enter the United States approvals need to be taken from the CFTC.
Earlier the US market regulator has permitted CME Group, Cboe, Bakkt, ErisX, and LedgerX to offer Bitcoin derivatives in the country. Notably, Cboe ended its Bitcoin contracts in early 2019, and demand for ErisX contracts remain dull.
Launched in 2015, Bitnomial raised $7.5 million last December and backed 12 venture capitals including Jump Capital, Coinbase Ventures, DV Chain, RRE Ventures, and Digital Currency Group.
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