Bitcoin trading is surely on the ascent as BitMEX, the crypto margin trading platform additionally revealed a record 1 million XBT contracts trading that day.
In first-ever exchange of the bitcoin futures position into the physical asset itself, two institutional investors made the strides. The institutional-grade crypto exchange itBit and the registered futures commission merchant, E D, and F Man Capital Markets have two institutional traders swap their bitcoin futures position in CME for an equal amount of “physical” bitcoin.
While this is common in commodities trading, it’s the first run through, such an EEP has been accounted for to the US futures exchange with digital currency as its hidden asset.
Brooks Dudley, from E.D and F Man Capital Markets Inc., shared, “Every day we facilitate EFPs for our clients in physical assets such as soybeans, wheat, and treasuries. EFPs on CME Bitcoin futures mark an important step forward in the maturity of the regulated derivatives market for digital currencies.”
As the market develops, these EEPs may turn out to be more common. Likewise, this will additionally give greater adaptability to the Wall Street.
Though not directly, the Wall Street is currently making its entrance into this nascent market. This colossal surge in bitcoin futures volume alongside the exchange of futures position to the genuine asset itself might conceivably fuel Wall Street’s further interest and crypto market.