The US Commodities and Futures Trading Commission (CFTC) has approved the application of LedgerX, a regulated crypto derivatives trading platform, for designation as a contract market. This clears the way for the firm to offer physically settled Bitcoin Futures Contracts.
Unlike cash-settled Bitcoin futures offered by the likes of CME and CBOE, physically settled futures require the buyer to receive the underlying commodity after the contract expires.
Importantly, LedgerX can now offer this product not just to institutional investors, but also to retail investors. However, no timeline has been announced for the launch of these products.
Bakkt, ErisX and Seed CX are other firms which are planning to enter the market. In fact, InterContinental Exchange-owned Bakkt has filed with the New York Department of Financial Services for approval to become a trust company and serve as a Qualified Custodian for crypto assets.