The London-based trading platform, CoinfloorEX, expects to launch in April; aiming at hedge funds, proprietary trading firms and sophisticated retail investors, as well as cryptocurrency miners, Mark Lamb, co-founder of Coinfloor, said in an interview.
“When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges,” the co-founder said.
Some traditional futures exchanges, including those run by Cboe Global Markets Inc and CME Group Inc, already offer Bitcoin futures. But they are cash settled, meaning the actual cryptocurrency does not change hands.
Coinfloor, was started in 2013 and runs the largest UK-based cryptocurrency spot exchange in London.
Write: Sara Bauer