Huobi Exchange to Launch Future Trading, Ripple’s XRP Will Be The First to Come
On January 25th, LTC became the 4th crypto to be added on their derivative market, following ETH, EOS, and BTC. Huobi said that the new contract for the LTC coin would be based on the LTC/USD index, which covers the price of LTC from four exchanges. These exchanges are Gdax, Kraken, Bitstamp, and Huobi. Each of these exchanges will have an equal share in the soon-to-be-launched index.
Huobi’s General Counsel Josh Goodbody, recently told Crypto Briefing that they plan to launch XRP futures contracts on their Derivative Markets. He said:
“We are planning on releasing our XRP contract in the very near future. Additional types of crypto-assets will also be added throughout 2019, and we expect the time between launches to get shorter and shorter.”
Goodbody said that XRP will be only the first of many to come in the future. He added that he was surprised by how institutional clients were interested in the derivative markets. An estimated $10 billion worth of trades have been done to start off the year through their DM platforms.
Futures trading can best be described as a strategy that deals with the management of risk. It revolves around contracts that are to be executed at a given future date, and which will be guided by a price agreed upon by all parties involved. Futures contracts also offer risk mitigation and hedging possibilities.
Ripple has also been the go-to cryptocurrency when it comes to established institutions. This will help Huobi get even more traction from their institutional clients. The high market cap and high trading volumes also help the platform.
When asked about Huobi’s future plans, Goodbody said:
“In the long term, we are going to continue building institutional-grade products, to further support, and capitalize, on the belief we have in the continuing involvement of institutional players.”