A cryptocurrency futures trading platform based in the UK known as Crypto Facilities is adding a new futures product permitting trades to take positions on Litecoin futures.
Crypto Facilities CEO Timo Schlaefer spoke regarding the project.
“We have seen extremely strong growth in futures trading volumes, up 84% in Q1 2018 on Q4 2017, and we expect this to be at around 100% in Q2 vs Q1. Monthly XRP volumes are at around $125mm (up from $30mm in February).
We launched ETH in May and have seen significant adoption of the product and expect around $150mm in volume this quarter, which is approximately a 10% share of our total volume which is excellent for a newly launched product.”
Crypto Facilities’ present derivates offering includes Bitcoin, Ripple, and Ethereum futures, with Litecoin being the latest addition.
Mr. Schlaefer noted that Litecoin’s liquidity was a factor in selecting to offer futures contracts on the currency ranked at 6 in the top ten list of cryptocurrencies by market capitalization with an overall value of $5.5 billion a 24-hour trading volume of $263 million.
“Litecoin is one of the most liquid cryptocurrencies and there was significant client demand for a futures product referencing Litecoin.”
“These are the first regulated Litecoin futures, authorized by the UK’s Financial Conduct Authority.”
Crypto Facilities allow 24/7 trading and provides CME Group, the world’s biggest derivatives exchange, with the CME CF Bitcoin Reference Rate that fuels CME’s Group’s Bitcoin futures including the CME CE Ether-Dollar Reference Rate and Real-Time Index.
The exchange will add their Litecoin futures on Friday, June 22, and will allow traders to take long and short positions on futures contracts collateralized with Litecoin with weekly, monthly, and quarterly maturities. Litecoin developer Charlie Lee spoke on the exchange’s announcement stating: “Litecoin futures will open up LTC trading to more institutional investors. This will add to the liquidity of Litecoin and make it easier for people to get in and out of Litecoin.”
CEO Timo Schlaefer went on to confirm that the exchange might be increasing their derivatives offering to other digital assets in future, stating:
“We will continue to respond to client demand for new contracts on the most liquid cryptocurrencies.”