CNBC reports that a popular trading platform has won permission to do the behind-the-scenes work necessary for options on the cryptocurrency:
The U.S. Commodity Futures Trading Commission announced Monday it unanimously approved digital currency trading platform LedgerX for clearing derivatives.
LedgerX initially plans to clear bitcoin options, the release said.
“Participants in the LedgerX venue will be able to obtain and hedge bitcoin and other digital currencies using exchange-traded and centrally-cleared options contracts,” stated a release from LedgerX. “Initially, LedgerX anticipates listing one to six-month options contracts for bitcoin. Other digital currency contracts such as ethereum options, are expected to follow.”
This marks a first for cryptocurrencies, which until now were only capable of normal trades on several disparate exchanges. As LedgerX noted, it’ll allow longer-term owners of bitcoin and ethereum to hedge their positions and buy a bit of insurance against a major downturn.
Bitcoin was trading at $2,780.56 on Monday afternoon, up around 0.65%.