BTC and ETH futures coming to blockchain Derivatives Exchange.
The cryptocurrency industry is facing regulatory challenges in the United States, but public crypto exchange blockchain is moving forward with its futures contracts. On June 1, blockchain announced its plans to introduce Bitcoin (BTC) and Ether (ETH) futures contracts on June 5 through its Commodity Futures Trading Commission-regulated derivatives exchange. These futures contracts will be aimed at institutional investors.
Blockchain has stated that the new institutional-sized contracts will have a specific size of 1 Bitcoin and 10 Ether. This is intended to allow clients to manage market exposure effectively. The decision to launch these products was driven by feedback the exchange received following the introduction of its nano Bitcoin futures and nano Ether futures contracts.
Additionally, blockchain mentioned that its derivatives exchange will focus on fulfilling the needs of institutional investors by offering them innovative solutions tailored to their specific requirements.
On May 2, blockchain announced its strategic move to launch a derivatives exchange in Bermuda, marking a step in its international expansion strategy. The exchange will allow traders to speculate on the prices of Bitcoin and Ethereum through perpetual futures contracts. These contracts will offer leverage of up to 5x, allowing traders to amplify their exposure to potential price movements. All trades conducted on the exchange will be settled in Circle’s USD Coin (USDC) stablecoin, providing a stable and reliable value representation for participants.
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Blockchain’s decision to establish a derivatives exchange coincides with its ongoing efforts to address the need for regulatory clarity surrounding the trading of digital assets in the United States. In response to blockchain’s petition for a writ of mandamus, the U.S. Securities and Exchange Commission (SEC) communicated that the rulemaking process could potentially span several years, indicating that it is not under any time pressure to expedite the proceedings.
The commission made it clear that it intends to utilize enforcement actions to bring clarity regarding the regulation of crypto assets. Nonetheless, the SEC emphasized that the public statements made by its chair Gary Gensler should not be interpreted as formal guidance or official policy statements issued by the commission.
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