Regulated derivatives exchange ErisX, backed by major U.S. brokerage TD Ameritrade, is estimated to launch their "Futures Digital Currency Products" today, aiming to capitalize on the rising interest in Bitcoin (BTC) futures among small investors.
The exchange’s portfolio currently comprises its Physically Settled Bitcoin derivative.
“ErisX’s physically delivered bitcoin futures contracts are the next step in building out our intermediary-friendly model for digital assets. Traded at and cleared through our CFTC [the U.S. Commodity Futures Trading Commission] regulated Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), our futures contracts trade alongside our spot market on an innovative and unified platform bringing price transparency and collateral efficiency,” the exchange said, confirming yesterday that trading of Futures Digital Currency Products starts today, at 8:00 AM CT (14:00 UTC) and is open on Monday-Friday 8:00 AM CT to 4:00 PM CT.
Meanwhile, J.B. Mackenzie, TD Ameritrade’s managing director of futures and foreign exchange, said in October 2018, when the company announced its investment in ErisX, that this platform will also allow clients to potentially trade other cryptocurrency futures, such as Ethereum (ETH) and Litecoin (LTC).
ErisX alreay launched their spot market for Bitcoin, Ethereum, Bitcoin Cash (BCH) and Litecoin in April 2019.
TD Ameritrade says its qualified clients are elligible to trade Bitcoin futures on its platform, but the requirements include an account minimum of USD 25,000 which could prove to be a dealbreaker to some individuals. By launching crypto futures on ErisX, the brokerage is broadening its potential customer base with small investors willing to allocate some of their funds to cryptocurrencies.
ErisX is starting by offering monthly and quarterly contracts, with a contract size of BTC 0.1 (USD 688) and position limit set at 200,000 contracts. In comparison, rival digital asset trading platform Bakkt offers physically delivered daily and monthly Bitcoin futures, both with a contract size of BTC 1 and a position limit of 100,000 lots. Bakkt’s portfolio also includes Bitcoin monthly options, and cash settled Bitcoin monthly futures.
TD Ameritrade provides investing and trading services for 11 million client accounts that total more than USD 1 trillion in assets, and custodial services for more than 6,000 independent registered investment advisors. In July this year, the company told Cryptonews.com that it saw “tremendous interest” since launching their bitcoin futures product in 2017, while 60,000 clients “traded some type of crypto product” with the platform this year.