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A milestone of Bitcoin derivatives market - ED&F Man capital markets and itBit execute EFP and BTC futures transaction
Bitcoin futures offer an instant, cost-effective method of crypto trade markets. They are standardized contracts to buy or sell a particular asset at a set price, on a set date in the future, in predefined quantity and quality.
Amid buzzing news radar, BTC ETF has been one significant aspect that would, potentially, herald the inflow of institutional funds into crypto-avenues.
But, as per an exhilarating report from Wall Street, ED&F Man Capital Markets and cryptocurrency trading exchange itBit has executed the first exchange for physical (EFP) transaction involving Bitcoin futures.
ED&F Man Capital Markets, a registered futures commission merchant which engages in commodities trading quite often. However, this is the first time any executed EFP trade has ever involved a cryptocurrency acting as the physical asset.
We reckon, for cryptocurrency industry and bitcoin derivatives markets, this transaction has become remarkable milestone, as Wall Street traders usually deploy this mainstream financial arrangement (EFPs) exclusively to mitigate risks arising out of their futures positions and diversify exposure to specific asset classes.
“Every day we facilitate EFPs for our clients in physical assets such as soybeans, wheat and treasuries,” stated Brooks Dudley, VP of ED&F Man Capital Markets. “EFPs on CME Bitcoin futures mark an important step forward in the maturity of the regulated derivatives market for digital currencies.”
Bitcoin price attempts to bounce back today (at $8,289.10) from yesterday’s lows of $8,073 (at BITFINEX), for now, momentum still needs to favour, as the trend goes in the narrow range.
Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 180 levels (which is highly bullish), while hourly USD spot index was at -74 (bearish), EUR at -59 (bearish ahead of today’s ECB’s monetary policy) while articulating (at 07:07 GMT). For more details on the index, please refer below weblink: