Retailers may invest in financial derivatives that will be liquidated in bitcoin
The company specialized in the exchange and compensation of derivatives LedgerX obtained authorization from the Commission of Trade of Future Products (CFTC), to offer financial derivatives to retail clients. The most important thing is that these investment agreements can be settled directly using bitcoins (BTC).
The clients of the company that are resident in the United States or Singapore will be able to benefit from this new investment product, regardless of the size of their capital. The contracts will be available as of this month.
Initially, the minimum investment will be USD 10,000 (or its equivalent in (BTC), but the minimum investment figure will be eliminated after one year, as LedgerX CEO Paul Chou told Bloomberg.) The idea is to attract new investors from Non-institutional profile, since retailers are the main objective of the expansion of services of the company.
“The license will allow retail to invest directly, and will represent the majority of the market. Retail investors are what led bitcoin to this level”, explained Paul Chou, CEO, LedgerX.
It should be noted that, until now, LedgerX had worked with institutional cryptoactive merchants with at least USD 10 million in assets. Retailers interested in bitcoin had to place their money in hedge funds specialized in cryptocurrencies or use services located abroad to invest in this type of derivatives.
This new minimum amount of investment, together with the possibility of investing directly in LedgerX (which has the relevant permits before the US authorities), represents an opportunity to enter the market for more investors, interested in investing in cryptocurrencies and bitcoin derivatives. with the necessary protection of their interests.
This is a new chapter in the expansion of investment services of LedgerX, which announced that they would move away from large investors, focusing on retailers.
In addition, as reported by CriptoNoticias at the end of June, the company obtained the permits required by the CFTC to offer future bitcoin contracts with physical reward, after having obtained its license for market contracts.
“I think that at the moment we do not see demand growing among large institutions and banks. Right now we see an opportunity towards the other end of the spectrum”, Chou said of that decision at that time.
With this type of investment instruments, the users receive the payment in bitcoin at the expiration of the contract, while the futures anchored to cash are paid in dollars.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.