Ether Options Could be Coming to the LedgerX Platform
LedgerX, the Bitcoin derivatives platform for institutions, has announced through The Block that they may soon be launching an Ether option. This will allow traders to bet on the price without any obligation to buy Ether.
The platform currently offers Bitcoin swaps and options under regulation from the Commodities Futures and Trading Commission (CFTC). Their new product tied to Ethereum is all ready to go live awaiting approval from the regulator. Once approved this new product will help further endorse Ethereum and products around cryptocurrencies helping them reach mass adoption and hopefully induce more to buy crypto.
Like equity markets, an option for a cryptocurrency allows the investor to set a price in the future to purchase the asset. The investor is then able to hedge their bet in an underlying market. The investor can pay the set price to buy Ethereum at any point during the contract until expiration. If the contract is still open as it comes towards the end, the investor can decide whether they want to buy Ethereum for the agreed price.
The price of the underlying asset is subject to change during this period, but the investor has no obligation to complete the purchase. The asset is not owned by the investor till the contract is complete unlike when you buy Ether through our site BC Bitcoin, you are buying the asset itself.
More and more products around cryptocurrencies are entering the market and hopefully with regulatory approval, they will further endorse crypto.
Ensure you’re kept up to date with the latest informative crypto news by heading over to BC Bitcoin. Don’t forget you can use our platform to buy crypto.