Bitcoin futures take crypto-currency a step forward

Author: Ashley Lee | Published: 24 Jul 2014

Bitcoin derivatives are another step forward in the development of the virtual currency as an asset class. A Bitcoin derivatives exchange founder tells IFLR what’s next.

There are a number of traditional Bitcoin exchanges, but there has been a comparatively smaller number of venues for trading Bitcoin derivatives.

The development of a Bitcoin derivatives market is needed to both hedge the crypto-currency’s volatility and to facilitate the use of common foreign exchange products in the Bitcoin market.

Although investors want solutions, very few startups are focusing on this area, said Arthur Hayes, an ex-equity derivatives trader and chief executive officer of the Bitcoin Mercantile Exchange (BitMEX), whose beta version will go live on Monday July 28.

He noted that only one or two exchanges offer a somewhat...