CFTC Approves US Bitcoin Futures and Options Exchange
In 2016, Bitnomial Exchange, LLC filed an application with the U.S. Commodity Futures Trading Commission (CFTC) to operate an exchange, formally known as a Designated Contract Market (DCM), for deliverable digital asset derivatives.
Fast-forward four years later and the Chicago-based Company is now approved by the CFTC to list margined and physically delivered digital asset futures and options, the first and only startup exchange to achieve these capabilities. Bitnomial Exchange says unregulated derivatives are booming in volume and through the company's new technology products, US traders will now have legal access to these markets.
“We are building the Bitcoin Product Complex, a suite of interrelated financial products, starting with quarterly Bitcoin futures, micro futures, and options. Additionally, our products initially trade on 37% margin and are settled on-chain instead of book entry,” said Bitnomial Founder and CEO, Luke Hoersten.
Bitnomial is the latest company to achieve regulatory approval for a blockchain related product as the digital asset industry becomes more sophisticated and seasoned. As companies and innovators continue to forge the path of head by developing new technologies and seeking regulatory clarity, we expect to continue to see similar announcements for products that will drive user adoption and create opportunities for consumers and institutional investors looking for exposure to digital assets and derivative products.
For more information, you can view the press release issued by Bitnomial.