Thursday, July 25, 2024

FTX seeks approval for Bitcoin futures.

FTX, a renowned crypto exchange, is seeking approval from the Commodity Futures Trading Commission (CFTC) for Bitcoin futures. If it gets the go-ahead, the Sam Bankman-Fried company could set a new precedent in the futures market.

FTX plans to automatically monitor the market – 24 hours a day and seven days a week. It will use the near-streaming data to update debit client balances nearly instant, which could result in many liquidated accounts. Market enthusiasts believe FTX will introduce advanced technology that could one day apply across the futures market.

However, FTX’s application for Bitcoin futures triggered criticism from competitors and Wall Street firms. Terrence Duffy, the CEO of Chicago Mercantile Exchange (CME), believes it will create market risk during a US Congressional hearing in May. It should be noted that CME offers a Bitcoin derivative product, which is designed to compete with FTX’s offerings. FTX’s plans ignited a fierce debate about its potential effect on the futures market. Some believe it will provide a vital breathing space to make important decisions or find extra cash. And some highlighted that innovation fosters competition, democratizes futures trading, and protects smaller investors from accumulating unaffordable debts.

Dennis Kelleher, co-founder, president, and CEO of Better Markets, says the CFTC must ensure the protection of customers and market participants. It must limit systemic risks. Chris Bae, CEO of Enhanced Digital Group, said its inevitable that more sophisticated trading strategies are coming up as the use of derivatives as the crypto market gets more mature. He outlined that they have seen institutional demand for structured products and derivatives being used to better navigate the current market cycle. Bae says its only natural for the retail market to follow.

A spokesperson for FTX said all investors should have the data, educational tools and a range of financial products available to make the best decisions possible for themselves.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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