Futures Trading: Buy When the Masses Sell
For those feeling discouraged by the slow cascading collapse of the global financial system, it is important to reassess any reservation on digital currency and blockchain technology. When looking closely at the futures market, at present we have a centralized financial exchange where people can trade standardized futures contracts. The general faith in such a market has been in its reliability in that a specific quantity of a commodity can be purchased at a specific price with a set time for delivery. The concern expressed towards digital currency is the fluctuation in value. Yet it is harmful to shut the door on the technology due to this fear when considering one’s patience will pay off in understanding efforts to increase liquidity, produce more tokenized companies and a greater number of exchanges opening up internationally.
For digital assets timing is incredibly important to grasp since it is an entire financial system that is being reworked on by blockchain and cryptocurrency companies. The number of on-ramps for new capital in the space will significantly increase as companies like Bakkt, Fidelity, Consensys, and others. A rise in capital by buyers and sellers will result, leading to increased capital and much-needed liquidity that can help avoid large sell-offs that would happen otherwise. For futures traders, the market is more profitable now that the price of BTC has lowered significantly.
Bakkt receives much attention from the cryptocurrency community since the crypto asset platform with Bitcoin as the predominant focus of the exchange is run by Kelly Loeffler and husband Jeff Sprecher whom also own the New York Stock Exchange and IntercontinentalExchange(ICE). The couple owns the leading global network of exchanges, clearing houses and will soon purchase the Singapore exchange. When considering their company ICE also will be the first western company to own an Asian market, a high volume of interest in their new exchange Bakkt required a postponed launch. Once attaining approval by the SEC regulatory authorities’ clients will receive bitcoin upon expiration of their contracts, rather than the token’s cash equivalent.
The strategy exercised by the couple in approaching the cryptocurrency space will ensure greater liquidity where other exchanges have taken on too many coins without executing evaluating the future of each coin and studying interest by the masses. It is also important to appreciate ICE effort to but exchanges outside the United States, since the current leadership at the SEC has been very tough on the community. By taking the right steps, the platform will offer regulated trading, clearing, custody, and security to bring crypto to the mainstream.
As exchanges become more cognizant of the need to assess coins before offering them on a platform and ensure government regulations are being obeyed, liquidity will increase with greater activity.
As the fourth largest asset manager in the world, Fidelity Investments is causing a precedent with the creation of Fidelity Digital Assets offering crypto storage and a trading platform for its institutional clients. By providing a custodianship solution, this effort will help Bakkt and other exchanges that follow their leadership model in offering Bitcoin futures. Respected leaders within the Wall Street community such as Mike Novogratz is confident in the support Fidelity will provide due to their expertise in handling large transactions while protecting assets of their clients. As most articulately stated by former Bitcoin.com editor Marvin Dumont,
“—Satoshi Nakamoto sought to render obsolescent by solving the problems of trustless money. Therein lies the friction of ICE, CME, Fidelity and others joining the world of crypto: These are complaint entities that answer to centralized bureaucrats (and shareholders).”
With Consensys, efforts to support the growth of futures cryptocurrency trading, within exchanges and other financial service companies will help a great deal to improve liquidity. When considering the number of projects ConsenSys has yet to launch which involve ETH and coins in cold storage, once released will demonstrate the profitability of the industry and the currency for futures traders. Once all the moving parts in the place and the alternative banking infrastructure is built out, the value of cryptocurrencies will increase with the movement of the currencies through the different projects developed by Joesph Lubin’s company. The intention of all actors involved is to ensure the profitability of the currency and superior value provided for consumers and traders to accept the alternative to our current fractured financial system. By providing tokenized securities, consumers would be trading utility tokens in a decentralized infrastructure that is more reliable than the centralized option where we see much counterfeit currency and double-spending.
Exchanges Opening Internationally
With commitment among exchanges in ASEAN to compete and adapt, it will help efforts by Bakkt, Fidelity, ConsenSys and other American based leaders in the cryptocurrency space to ensure improved liquidity and greater return for futures traders. Indonesia’s Jakarta Futures Exchange is being guided by the Australian based, Kinesis Money and Allocated Bullion Exchange. Once again, demonstrating the wealth of opportunity of the technology and evidence of a global community of cryptocurrency leaders supporting one another’s efforts which will ensure futures traders will see profit from the alternative currencies.
Written by Shermineh Salieh Esmati
As the CEO and founder of Cyrus BC Inc. Shermineh provides advisory services to promote the interests of her clients through the application of innovative products. One focus of Cyrus BC is to bring deliverable blockchain initiatives to the attention of investors focused on the security and socio-economic benefits of the technology.
With a background in foreign policy and intelligence analysis, Shermineh has been using her grasp of geopolitics to aid blockchain companies to best pursue growth while respecting international cryptocurrency regulations and blockchain policy. To ensure the expedited adoption of fintech products she is working with Blockchain Intelligence Group, New Economies DLT and building collaborative efforts for AI blockchain projects soon to be announced.
Shermineh has experience advising intelligence agencies, political leaders, management consultancies and human rights organizations. In the pursuit of developing an expertise in international security, Shermineh obtained her bachelor’s degree with a Specialist in Political Science at the University of Toronto and is completing her master’s degree in Government at Harvard University. To further Canada’s efforts in emerging technology she is also a member of the Blockchain Association of Canada and an Advisor to the Open Source Data Committee at the Treasury Board Secretariat in Ottawa, Canada.