The Commodity Futures Trading Commission on Monday granted a license to an entity to serve as a derivative-trading platform for bitcoin and other cybercurrencies like Ethereum's ether. The CFTC approved New York-based LedgerX to provide clearing services for options and derivatives pegged to the nascent cryptocurrency market--a regulatory approval that could potentially expand trading in bitcoin and other such currencies. According to Reuters, Ledger Holdings, the parent of LedgerX, raised about $11 million in funding from groups including Miami International Holdings Inc. and China's Huiyin Blockchain Venture Investments to help run its clearing business. About $1.5 million was raised from funders led by Google Ventures and Lightspeed Venture Partners, Reuters reported. Monday's CFTC approval comes about four months after the SEC rejected a proposal by twins Tyler and Cameroon Winklevoss for a bitcoin exchange-traded fund. For LedgerX's part, the startup, which has been seeking a bitcoin derivatives license for years, is expected to begin its operation by offering so-called put and call options, which are contracts that grant the owners the right, but not the obligation to buy and sell an underlying asset at designated price and time. On Monday, a single bitcoin was trading at $2,768, up fractionally on the day.
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