Thanks to the compliant derivatives provided by LedgerX, ordinary investors can already bet on bitcoin prices to rise to $100,000. LedgerX recently announced a call option, and buyers are betting that bitcoin prices will exceed $100,000 by December 2020. This means that the price of Bitcoin needs to be 10 times higher than the current price, which will also bring the market value of this digital asset to $2 trillion.
LedgerX has been providing derivatives to institutional clients for the past two years, and today the company has been approved by the US Commodity Futures Trading Commission (CFTC) to offer retail investors new products – the call option is the first.
At present, it is unclear how many investors are interested in the product, especially after Bitcoin has appreciated by 25% in the past two weeks. Paul Chou, CEO of LedgerX, said:
“Usually, the first deal is the most important and everyone else is paying attention.”
Chou also mentioned that many LedgerX institutional clients with accounts ranging from $10 million to $1 billion have asked for call options.
Chou said that many users are interested in such contracts.
“I know that $100,000 is a big number, but many of us who have worked in this field remember that the price of bitcoin is $1, then it’s $10, $100 and $10,000. $100,000. The contract will not shake us at all."
Interestingly, with more and more institutions and derivatives coming on the market, Bitcoin has recently fallen sharply from a high of $13,200. Some analysts say that the recent callback is purely technical, while others believe that the Senate Banking Committee’s hearing on the Facebook Libra project yesterday injected unnecessary fear into the encryption market.
At the time of the launch of LedgerX, Bitcoin Derivatives Exchange BitMEX and other Bitcoin derivatives exchanges such as the Chicago Mercantile Exchange (CME) are welcoming more and more institutional traders, and trading volume hit a record high.
Even more exciting is the fact that the Bakkt Futures Exchange, part of the Intercontinental Exchange (ICE), plans to begin testing bitcoin futures on July 22. (Babbit)