ErisX Launches Physically-Settled Ethereum Futures Contracts
Another remarkable leap forward for the Ethereum community, and the entire cryptocurrency world, is on the cards. Just today, Chicago-based crypto exchange ErisX has launched its own physically-settled Ether futures contracts, meaning investors receive real cryptocurrency and not the cash equivalent.
To help jump-start that process, block trading will also be available on ErisX’s Ether futures contracts.
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Ether trades are executed through the crypto exchange operator’s central limit order book, which ensures all submitted orders are cleared at the ErisX clearinghouse to eliminate counterparty risk.
The move comes shortly after the New York State Department of Financial Services (NYDFS) has granted its first BitLicense of this year to ErisX.
“We strongly believe that the Ethereum blockchain community and broader capital markets benefit from access to regulated products and we are pleased to be the first U.S. exchange to offer these futures contracts. Our contract sizes are accessible for any investor while our technology stack and regulatory framework meet institutional expectations,” said Thomas Chippas, CEO of ErisX.
ErisX makes its products available via US brokers
ErisX, which is backed by US brokerage TD Ameritrade, has been granted two different regulatory designations, a derivatives clearing license and a designated contract market (DCM) license.
While its contracts vie with the Bakkt’s futures in trading physically delivered Bitcoin, ErisX was the first digital asset exchange to offer both spot and futures markets on the same platform. ErisX’s first spot trading product, which includes Bitcoin, Bitcoin Cash, Ehtereum, and Litecoin, went live in April 2019.
The three-year startup has also made its products available via US brokers licensed as futures commission merchants (FCMs). It has recently onboarded TradeStation Crypto to expand the breadth of accessible liquidity available to the latter’s customers
ErisX was among four regulated trading platforms in the US vying to become the first to launch physically-delivered bitcoin futures. Earlier last year, the firm concluded a funding round raising more than $27 million from major financial institutions like Bitmain, ConsenSys, Fidelity Investments, and Nasdaq Ventures.
“The Ethereum network is the leading programmable blockchain delivering real-world value to enterprises, governments, and individuals. As the digital fuel for the network, Ether is structured similarly to commodities traded in traditional capital markets today,” said Joseph Lubin, Founder of ConsenSys, an early investor in ErisX.
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