Litecoin (LTC) and Bitcoin Cash (BCH) Futures Volume Skyrockets to $150 Million on Kraken

Litecoin (LTC) and Bitcoin Cash (BCH) Futures volume are soaring on Kraken owned futures platform, surpassing $150 Million in volume last month.

US-based Cryptocurrency Exchange Kraken acquired Crypto Facilities, a futures trading platform in February this year after which volumes have soared on the platform. Crypto Facilities is a regulated platform based out of UK, it is one of the only platforms that facilitates physically settled futures contracts for altcoins like Bitcoin cash, XRP, and Litecoin.

Litecoin and Bitcoin Cash futures volumes on the exchange last month were around $100 Million and $50 Million respectively according to spokesman Sui Chung.

Sui Chung, head of indices and pricing products said in an interview with Coindesk:

“We began to onboard Kraken users … [and] that’s basically given us better exposure to the communities around litecoin and bitcoin cash, and I think what we’re seeing is those communities have a pretty strong interest in trading derivatives for litecoin and bitcoin cash, respectively, The volumes have gone up pretty appreciably.”

The volumes before the Kraken acquisition for Litecoin and Bitcoin Cash futures were around $15 Million and $10 Million respectively, Chung cites several reasons for the sudden increase in volume.

• Crypto facilities, is one of the only exchanges that “offer regulated altcoin futures contracts that pay out in the underlying cryptocurrencies.” There is pent up demand for regulated products in the Crypto space.
• Kraken’s userbase is exposed to the product which allowed the platform to onboard new users.
• The futures contracts are physically settled (which means the underlying Cryptocurrencies are transferred after the contract expires), unlike BitMEX which only settles trades in Bitcoins.

There is definitely a need in the Crypto market for regulated products that legally protect the investors from the underlying third-party risks. Even though Cryptocurrencies like Litecoin and Bitcoin Cash have little to offer in terms of properties over Bitcoin they have active communities and deeper market liquidity than most other altcoins.

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