CoinFlex to Become the First Crypto Exchange to Offer Physically-Delivered Bitcoin Futures


  • New crypto exchange on the block Hong Kong-based CoinFlex claims to be the world’s first exchange that offers physical delivery for bitcoin futures contracts
  • Bitcoin Cash proponent Roger Ver, Divergence Digital Currency, NGC Ventures, and Polychain Capital invested $10 million in the exchange

The race to launch physically delivered Bitcoin futures contracts has been on for quite some time now.

ICE’s Bakkt was expected to be the first one but it got delayed too many times.

However, recently Bakkt officially announced that it has received the green light from CFTC and will be launching is services on September 23.

LedgerX is another participant in this race that “incorrectly announced” that the company is “live with trading futures for retail” earlier this month. The newly obtained DCM license actually allows it to launch a retail trading platform for swaps and options.

Another one on this list is ErisX which was recently approved for physically-delivered bitcoin futures by the CFTC.

The US companies are not the only ones vying to become the first one to offer these contracts.

Hong Kong-based new cryptocurrency futures exchange CoinFlex claims to be the world’s first exchange to offer physically-delivered bitcoin futures contracts, reported South China Morning Post.

These contracts, Mark Lamb, chief executive of the Hong Kong-based company, said are less prone to manipulation.

“Professional and retail traders alike are affected by price manipulation in the cash settled futures market. In physical delivered contracts, anyone long at expiry receives the underlying bitcoin. There are no formulas involved,” Lamb said.

Back in November 2018, Hong Kong’s Securities and Futures Commission proposed said it was unlikely to grant licenses to exchange that offered futures and derivatives contracts trading.

CoinFlex closed a $10 million financing round last week from several blockchain investors including Bitcoin Cash proponent Roger Ver, Divergence Digital Currency, NGC Ventures, and Polychain Capital.

Although a new exchange on the market, CoinFlex is aiming big as its goal is to overtake the world’s second-largest crypto futures exchange BitMEX.

It would be interesting to see which one gets into the market first and if there is really a demand for physically-delivered bItcoin futures because as Lennix Lai, financial markets director at OKEx, says it means “dealing with fiat currencies, and having the total bitcoin in hand.

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