Crypto Facilities, UK-based crypto futures trading platform and an off-shoot of CME Group has announced its intention to begin trading Litecoin futures. In an announcement made on Wednesday, June 20th, the new LTC derivatives will become available on Friday. The exchange already offers futures trading for Bitcoin, Ethereum and Ripple. With this latest introduction, investors will get the opportunity to long or short Litecoin-backed futures contracts that will have weekly, monthly and quarterly maturities.
The CEO of Crypto Facilities, Timo Schlaefer commented that this addition comes as a result of “strong client demand” for Litecoin-as-collateral futures contracts.
We are excited to be launching futures on Litecoin, one of the most widely traded cryptocurrencies. There has been strong client demand for this product and we believe our LTC-Dollar futures contracts will increase price transparency, liquidity, and efficiency in the cryptocurrency markets. As digital assets continue to mature, we expect to see a greater number of institutional investors entering the marketplace.” His full quote said.
Charlie Lee was also optimistic about this announcement, confirming that the new derivatives will bring Litecoin closer to potential institutional investors. “This will add to the liquidity of Litecoin and make it easier for people to get in and out of Litecoin,” Lee added. CoinDesk has confirmed that the firm is expecting the trading volume of its Ethereum futures contracts to reach around $150 million in this quarter, which should amount to around 10 percent of the platform’s total. In an effort designed to provide liquidity to their clients, CF enlisted the services of Sensus Markets. Kyle Davies, co-founder of Sensus Markets, commented on their partnership with Crypto Facilities:
“Sensus Markets is excited to contribute to the growth and success of Crypto Facilities and the firm’s widely traded cryptocurrency futures products. As an active liquidity provider of 20+ digital assets, we believe the market will embrace the launch of a well planned and strategically executed Litecoin futures product.”
Read here about best LTC wallets.
Crypto Facilities has been trading futures for a while now and the latest addition of Litecoin confirms their intention to keep expanding their portfolio. The LTC futures will become available just a month after CF announced Ethereum-based futures contracts in a collaborative effort with the CME Group. CME CF Ether-Dollar Reference Rate and CME CF Ether-Dollar Real Time Index were launched a couple of days prior and will be calculated by Crypto Facilities. Many observers feel that CME will be using these “soft” launches of Ethereum and Litecoin futures by their sister Crypto Facilities platform to gauge interest for a native large-scale launch.
As far as price is concerned, futures and derivatives are a double-edge sword as they lure a lot of manipulators in the market. Litecoin price could see a short-term price slump because of these news but in long-term this should be a positive for litecoin as it brings liquidity to the market.
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