CoinfloorEX, a daughter unit of the British cryptocurrency exchange Coinfloor, is now offering the trade of physical Bitcoin futures on the Asian market under the name CoinFLEX. This means that people can now get a contract to buy specific quantities of a commodity at a specified price with delivery set at a specified time in the future. The CEO of the Coinfloor reported this news to Bloomberg on 7th of January.
The unit is rebranded CoinFLEX which is a combination of “Coin Futures” and “Lending Exchange”. Reportedly, it is owned by a consortium which includes Roger Ver, the early bitcoin entrepreneur, and avid Bitcoin Cash promoter. CoinFLEX will possibly become the largest venue for trading of Bitcoin Cash derivatives.
The new venture will be based in Hong Kong and directed by Coinfloor’s co-founder, Mark Lamb. It is expected that CoinFLEX will connect with other big exchanges present in the region, such as BitMex, which is one of the biggest crypto trading platforms today.
Physically delivered Bitcoin futures are “one of the most closely watched products in the world of cryptocurrencies” according to Bloomberg. CoinFLEX, which has reached first place in the competition to this market, will provide the derivatives on some of the most valued cryptocurrencies to Asian retail investors beginning next month. These include Bitcoin, Bitcoin Cash and Ethereum that can be leveraged up to 20 times.
The fact that CoinFLEX will deliver all futures physically is what distinguishes it from any other company. This means that contracts expire, the owners will receive the given cryptocurrency itself instead of cash payment. Bloomberg reports that this is “an important distinction in the largely unregulated markets where Bitcoin and other digital coins currently trade as some big players say the process for settling a contract in cash could be manipulated.”
Coinfloor is the oldest and one of the biggest online crypto exchanges in the UK. It is characterized by its feature of no trading fees. It launched the first exchange-backed, peer-to-peer marketplace named Coinfloor Market, which connects between verified brokers, consumers and potential investors. While CoinFLEX is breaking away from its mother company, Coinfloor will retain an equity stake.