Bitcoin derivatives are another step forward in the
development of the virtual currency as an asset class. A
Bitcoin derivatives exchange founder tells IFLR
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
Exchange (BitMEX), whose beta version will go live on
Monday July 28.
He noted that only one or two exchanges offer a