Futures contracts on bitcoin cash can be available at a CFTC-regulated exchange by the end of this year or the first quarter of 2020. This will allow institutional U.S. investors to trade on a derivative of the cryptocurrency and bring in more trading volume for BCH overall.
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Bitcoin.com Champions Bitcoin Cash Futures
Bitcoin.com is in discussions about listing a bitcoin cash (BCH) futures contract on a new exchange with approval from the U.S. Commodity Futures Trading Commission (CFTC). David Shin, the head of the exchange business at Bitcoin.com, expects the new instrument can reach the market by the end of the year, or the first quarter of 2020, and that it will be cash-settled on day one.
The goal of having a BCH futures contract on a CFTC-regulated venue is to open up the U.S. market so that more institutional traders can gain exposure to the cryptocurrency and thus generate higher trading volumes in total. Additionally, there is interest from some retail brokers in offering trading on such a regulated instrument, and Shin is also in talks with them about the possibility.
“We are in discussion with a US exchange that will shortly be CFTC approved to list a BCH futures contract to create greater demand for BCH and increase trading volumes,” Bitcoin.com CEO Stefan Rust explains. “There are two main reasons behind this. First, with BCH futures, institutions will be able to manage the exposure to market volatility better and therefore protect funds under management better, and hence allocate a larger portion of their funds to BCH. Second, with this product BCH is also
