Coinfloor, a London-based group of cryptocurrency exchanges for institutional and sophisticated investors and traders, plans to launch a futures exchange for digital assets that will include the first physically delivered bitcoin futures contracts. The new exchange, CoinfloorEX, will allow miners, hedge funds, traders and sophisticated investors to unlock the financial potential of bitcoin at scale, through specifically designed cryptocurrency contracts and operational controls, supported by institutional grade risk management and governance, Coinifloor announced in a press release.
By offering the first physically delivered cryptocurrency futures contracts, CoinfloorEX was designed to protect investors and traders against price slippage on positions at the time of settlement, as well as concerns of market manipulation. The settlement is based on physical delivery rather than an index price from across other exchanges, providing greater pricing transparency.
Access to Coinfloor’s spot exchange will allow investors to convert bitcoin to fiat currency post-physical delivery, providing opportunities for longer-term currency appreciation or through meeting bitcoin-denominated obligations.