Interesting news just in from Cointelegraph: LedgerX, a United States-based regulated crypto derivatives and clearing platform, is giving retail investors resident in the USA or Singapore the chance to bet on bitcoin (BTC) hitting $100,000 by 2020.
This is the first crypto derivatives product open to ‘mom and pop’ investors. LedgerX has been approved by the U.S. Commodity Futures Trading Commission (CFTC) to serve as a designated contract market for clients of any size.
This market has been open to institutional investors for two years on LedgerX and its CEO, Paul Chou told Bloomberg that such clients — who each hold assets worth between $10 million and $1 billion — have already expressed interest in the new product. Chou said, “Dozens and dozens of these institutions got back to us saying we’d be interested in trading a contract like this. I understand $100,000 is a large number, but a lot of us who’ve been in this space remember Bitcoin at $1, and then it hit $10 and $100 and $10,000. A $100,000 contract doesn’t even make us blink.”
The LedgerX venture plans to let consumers living in the USA or Singapore sign up to trade, starting in July. Initially, investors will have to deposit at least $10,000 in dollars or bitcoin, but the minimum deposit will go down to zero within a year, according to the CEO. He added, “The license will allow retail to directly invest, and they will represent the majority of the market. Retail investors are the ones that drove bitcoin to this level.”
Chou also said he believes other exchanges are about six months behind LedgerX in gaining regulators’ approval for expanded access to Bitcoin derivatives: “We are way, way ahead of those test efforts.”