Tom Chippas, the CEO of ErisX Digital, spoke about the current status of its Bitcoin futures contract, and commented on who was currently buying into Bitcoin, considering the rise of futures volume, during an interview with TD Ameritrade Network.
Chippas was aksed who he thought was buying Bitcoin, whether it was someone who was running a pension fund or a hedge fund, and whether there was a way to find out. To this, he stated,
“[…] Well, there’s no one place to find out, so to answer the second part of that first. But it’s definitely being done. What I would say is we have a market that’s still evolving specifically there’s a point in click, retail trading going on for sure […]”
He further stated that there were some institutional asset management, mainly hedge funds. According to the CEO, the main activity was taking place in the Over-the-Counter [OTC] trading platforms, where counterparties agree to trade individually and those trades “never print to tape anywhere”. Chippas went on to state,
“[…] one of the things we will be providing is a clearinghouse, allowing counterparts to agree that block trade and then that information would come into our market data. So, it would be available to the appropriate controls around it, much like is required in futures today […] it’s something that we would be bringing to spot crypto […]”
Chippas stated that ErisX’s spot market has been live for nearly a month and that the futures was still subject to “final licensing” requirements from the CFTC, adding that they were “at the late stages of those conversations.” Further, the CEO spoke about the drop of the XBT contracts, stating that there would be experiments, which would have different results. He added that the development of a robust spot market, which has a reliable price, was going to be important for multiple players.
[…] You need market players to provide inter-day liquidity. You need producer, hedgers, speculators and that’s what we’re trying to grow, trying to bring minors in as well as really give that fulsome market. So that you have price discovery happening not just on one side of the way but across multiple counterparts with different time horizons.”
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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.