UK cryptocurrency exchange, Crypto Facilities, is set to launch Litecoin derivatives contracts from Friday, June 22, according to rumours. The exchange will be offering both short and long positions with weekly, monthly, and quarterly maturities, and LTC will be joining Bitcoin (BTC) and Ripple (XRP) futures. The exchange also added Ethereum (ETH) futures last month. However, not everybody sees the offering of futures as a positive move. Many people point to the launch of Bitcoin Futures as being the catalyst for the major downturn in Bitcoin’s fortunes. The Crypto Facilities’ offering will be the first Litecoin derivatives market on offer.
Will Futures Cause A Litecoin Price Decline?
A lot of investors and analysts point to the start of Bitcoin Futures as being the reason for this year’s market depression. It enables traders to open bearish positions, as well as bullish positions, which can push prices down. Bitcoin reached its all time high of $20,000 in December last year, just before futures contracts were launched by CBOE and CME; the same time as the start of price declines. Bitcoin is currently trading at just under $7,000, with some traders inevitably pointing to the launch of futures contracts as the launchpad for this downturn, although others disagree.
The new Litecoin derivatives will be offered against the US Dollar.
Crypto Facilities is a UK based crypto exchange. It offers leveraged positions up to 50x and, announcing the launch of Litecoin derivatives, Timo Schlaefer, CEO of Crypto Facilities, said “We are excited to be launching futures on Litecoin, one of the most widely traded cryptocurrencies.” While Charlie Lee, creator of Litecoin, said “Litecoin futures will open up LTC trading to more institutional investors. This will add to the liquidity of Litecoin and make it easier for people to get in and out of Litecoin.”
Although the move has its critics, a lot of investors want more institutional investors in the market, in order to spur on another bull run, and futures contracts will bring them. It is inevitable that there will be futures markets for all of the major coins, and the speed at which derivatives are being launched is increasing.