CoinfloorEX, a Bitcoin futures exchange for Bitcoin and other cryptocurrencies has been launched by Coinfloor, the group of cryptocurrency exchanges for institutional and sophisticated investors and traders.
Owners said CoinfloorEX will allow hedge funds, traders, sophisticated investors and miners to unlock the financial potential of Bitcoin at scale, through specifically designed cryptocurrency contracts and operational controls, underpinned by institutional grade risk management and governance.
CoinfloorEX will offer for the first time ever physically delivered cryptocurrency futures contracts, created to protect investors and traders against price slippage on positions at time of settlement, as well as concerns of market manipulation. Settlement is based on physical delivery rather than an index price from across other exchanges, which provides maximum pricing transparency.
Access to Coinfloor’s spot exchange enables investors to easily convert Bitcoin to Fiat currency post-physical delivery, creating opportunities for longer-term currency appreciation or through meeting Bitcoin-denominated obligations. Security of the exchange is underscored by 100% multi-signature cold storage cryptocurrency custody facility, safeguarding client portfolios from theft, loss or other security issues associated with partially online or online only storage of assets. Coinfloor also provides monthly solvency audits of Bitcoin balances, which gives institutional investors assurance that CoinfloorEX has sufficient Bitcoin liquidity to manage market fluctuation. The first physically delivered contract will be launching in April 2018 and will be for physical delivery of Bitcoin (XBT). Obi Nwosu, CEO of Coinfloor comments: “Our mission is to build a bridge between Fiat currency and cryptocurrency to drive the stability and sustainability of cryptocurrency.
Numerous market participants are calling on existing cryptocurrency exchanges that provide futures contracts to switch from cash to physical settlement. However, making that transition will be very difficult for them to achieve. We understood this requirement from the start, and have worked for over two years to bring this functionality to market. Now, institutional investors and traders can capitalise on market dynamics, within their own risk parameters and in line with their individual trading strategies”.