LedgerX’s Physically Settled Bitcoin Futures Have Not Been Approved By CFTC Yet
- The CFTC has not approved the launch of LedgerX’s Omni platform.
- Previous reports from The Block and others reported that the bitcoin futures had been launched, following a tweet from LedgerX.
Yesterday, reports came out that LedgerX was finally launching the physically delivered bitcoin [BTC] options and custody that they had been working on, according to The Block. In the original report, The Block had spoken previously with LedgerX’s CEO, discussing the way that this product would open doors for institutional investors. While these previous reports showed accurate information about what the public can expect from the new product, the launch has not happened.
The Block reported on the current situation, correcting their previous statements. Instead, the publication is now claiming that the current state of the launch is “unclear,” and that the futures contracts do not appear to be going live anytime soon, as the Commodities Futures Trading Commission (CFTC) has already stated that they’ve not approved the launch, according to statements released to CoinDesk.
Many publications reported on an announcement from LedgerX, dated July 31st, that the Omni trading platform already had physical futures offering live. However, based on information from the CFTC, that is impossible. On Twitter, a derivative specialist named Thomas G. Thompson said that “the CFTC does not show any futures contracts certified by” the authority. While it is possible that their existing swaps were launched on the new futures platform, he added that this is “still [an] important development.”
I think they launched their existing swaps on their new futures platform, so far. The CFTC does not show any futures contracts certified by #ledgerX. Still important development because now retail can trade bitcoin options and swaps. pic.twitter.com/VCyd7S9sAF
— Thomas G. Thompson (@TGTSwaps) July 31, 2019
The reporter with The Block stated that there’s no reported trade volume at this point, according to an anonymous industry leader, which suggests that the launch didn’t happen. However, on the official Twitter account for LedgerX, the company invited users to sign up to receive “early access” to Ledger OmniX.
Yesterday, LedgerX had tweeted that they were “live with retail trading on Omni.” However, the tweet has since been deleted. The screenshot, pulled from reports from The Block, can be seen below.
LedgerX originally revealed in April that they were working to offer Bitcoin futures, following their filing with the CFTC in November 2018 for the requisite licenses. Last month, the CFTC provided LedgerX with a designated contract markets (DCM) license, offering the final approval that it needed. While approval processes have been complete, a launch date has not officially been announced.
Along with LedgerX, Bakkt is already working with the CFTC to obtain a trust charter from the New York Department of Financial Services. Bakkt would most likely launch within a few weeks of having this trust charter approved.
ErisX, much like LedgerX, has received the approvals that they need, but no launch date or other timeline has been made available for their futures contracts. Cryptocurrency spot trading started being offered by ErisX in April of this year.