Roger Ver’s Bitcoin.com is planning to launch a futures contract for Bitcoin Cash, Bloomberg reported on Thursday.
The prospect of the company was revealed by David Shin, head of Bitcoin.com’s newly launched crypto exchange.
By introducing futures contracts, the company is aiming to increase the market capitalization of the digital currency, making it the second-largest crypto, only after Bitcoin.
“Within a year I want to make that the second- or third-largest market cap,” Shin told the publication. “To get from No. 4 to No. 3 or No. 2, we have to see more volume.”
Introducing Axiory Intelligence, an Independent Market News-ProviderGo to article >>
Big ambitions with BCH
With a market cap of over $5.3 billion, Bitcoin Cash is currently the fourth-largest cryptocurrency on the market. However, even to move one place up in the list, the digital currency has to double is a market cap as XRP, the third-largest crypto, affirms its position with more than $10.9 billion in market cap.
Shin also revealed that Bitcoin.com had initiated talks with an unnamed US-regulated futures exchange. He is also planning to approach the Chicago Mercantile Exchange (CME) Group with the proposal of listing a Bitcoin Cash-backed futures instrument. CME Group is the leading distributor of Bitcoin futures on the US market and is gearing up to launch another Bitcoin derivative product.
“We’ll try to list a BCH future on one of these exchanges that’s CFTC regulated to, therefore, have a product that can be traded into the U.S. with institutional traders,” Shin added. “In theory, we should see more penetration, more users, more trading and more volume.”
Bitcoin.com recently launched its crypto exchange with four major base currencies. To attract traders to the platform, it is also offering a 0.5 percent negative trading fee, meaning traders will earn money with the execution of each trade.
“I don’t think the institutions really know what BCH is, so I want to be out there to change that rhetoric,” Shin added. “There’s a real opportunity if we believe two contracts are not enough, and maybe three to five is the right number, that the third one should be Bitcoin Cash.”