It’s not just Bitcoin Futures any more. Beyond Ethereum and Ripple futures contracts as well as others, another well-known cryptocurrency will soon be hitting the derivatives market.
On Friday, Litecoin futures are going live on the trading platform called Crypto Facilities, which is based in the United Kingdom.
Once this service is live, investors will be able to choose long or short positions on a variety of futures contracts that are all based on Litecoin.
Apparently, their options will include weekly, monthly and quarterly finish lines, so at this point, yearly and beyond have been ruled out.
With the claim that Bitcoin futures contracts majorly affected and may have even engineered its rapid rise and subsequent fall by the beginning of this year, it is reasonable to wonder: what effect will these contracts have on the current price of Litecoin?
Charlie Lee, the famous creator of Litecoin, seems to think that once these contracts launch, Litecoin will have a considerable amount more of liquidity and therefore, investors will find it much more easy to buy and sell it, at will.
If this is in fact, true, then it could imply that Litecoin’s price will rise based on futures contract-based speculation. If this occurs, then it will most likely only be a matter of time before it falls again to reflect its actual, current value.
The CEO of Crypto Facilities, Timo Schlaefer, reportedly said that the company chose to introduce Litecoin futures contracts due to a strong call for them from customers.
Furthermore, he was quoted as saying that said contracts will not just increase Litecoin’s liquidity, but the liquidity of the overall market, considerably.
Whatever the total effect turns out to be, keeping one’s eye on Litecoin’s price movement on Friday would be wise. In the first few hours, we should start to see considerable changes if the past Bitcoin futures contracts are taken into account for comparison.
By: BGN Editorial Staff