ErisX Pitches Direct Competition to Bakkt By Launching Physically-settled Bitcoin Futures Contracts

Cryptocurrency exchange and derivatives platform ErisX has announced the launch of its physically-settled Bitcoin Futures contracts in the U.S.

Dubbed as the “Futures Digital Currency Products” the futures contracts went live on Tuesday, December 18. After Bakkt, the ErisX offering is the second such product launched in the U.S. markets.

In the press release, the company mentions that the ErisX Bitcoin futures would trade alongside the company’s existing cryptocurrency spot exchange. As per its product page, the size of ErisX’s Bitcoin futures is 0.1 BTC with an option to trade in both - daily and monthly futures contracts.

In the summer of 2019, ErisX secured the Derivatives Clearing Organization (DCO) license from the U.S. regulatory body - Commodity Futures Trading Commission (CFTC). Since then, the cryptocurrency derivatives platform is working actively for its futures products.

ErisX CEO Thomas Chippas said that his company had successfully accomplished aggressive goals this year by raising some funds, expanding the team, and getting necessary regulatory licenses.

In a blog post, the company said: “We know that growth in open interest will take time and there are clear challenges ahead. Introducing an intermediary market is a multi-step process, not an event, and our experience with such launches has taught us to build for longevity.”

Futures Commission merchants like WebBush Securities and E*Trade are some of the early participants in the ErisX’s futures marketplace. Chris Larkin, Senior Vice President, E*Trade, said: "The launch of ErisX's fully regulated futures market is a significant development for the digital asset industry. The more accessible contract size and transparent order book provides first time market participants exposure to digital assets through a familiar mechanism.”

As we said earlier, the ErisX Bitcoin futures will pitch a straight competition to the Bakkt Bitcoin Futures launched earlier this year in September 2019. Since its launch, the peon interest for the Bakkt Bitcoin futures is growing rapidly and recently made a new all-time high earlier this month.

This shows the institutional interest for Bitcoin derivative products in the market. Besides, Bakkt also has its own custodial solutions offering secure storage of BTC tokens. ErisX has yet to provide information on how its plans to handle Bitcoin custody for its clients.

Citing higher client demand, the Bakkt platform also launched option contracts against its Bitcoin futures earlier this month.