LedgerX recently announced the introduction of a call option that can help raise the price of Bitcoin to $100,000 by 2020.
When will the Bitcoin's price reach such a high level?
Investors can now place bets on when Bitcoin
will reach $100,000 thanks to regulated instruments offered by the LedgerX
exchange. The stock market has recently revealed the call option, and its users bet that Bitcoin's price will exceed $100,000 until December 2020. This means that Bitcoin would have to register a 10-fold higher traffic, which would also lead to market capitalization of digital assets up to $2 billion.
During the last two years, LedgerX offered such instruments only to its institutional clients. Now that the company has obtained the consent of the Commodity Futures Trading Commission
(CFTC), it will provide a unique call option to retail investors.
Who will accumulate losses?
Currently, it is not known how many investors are seriously interested in the product, especially after the major, 25% drop in Bitcoin's price over the past two weeks. The president of LedgerX, Paul Chou
, in a statement for Bloomberg, said:
The very beginning is the most important, all eyes are then directed in our way.
Chou also mentioned that many LedgerX corporate clients with accounts ranging from $10 million to $1 billion asked for a call option.
Dozens of these institutions have returned to us, saying that we will certainly be interested in concluding such a contract.
Paul Chou explained that while $ 100,000 is a large sum, many of the investors in the world of cryptocurrencies perfectly remember the times when Bitcoin cost $1. Later, the rate jumped to $10, crossed the threshold of $100 and reached the $10,000. A contract with such value is now just unattractive.
LedgerX is not a pioneer on this mater
Announcement of the LedgerX product appeared in an ideal moment. Other exchanges, such as BitMEX
, have recently been experiencing the largest volumes driven by institutional investors in their history. As if that were not enough, on July 22, futures tests for Bitcoin on the Bakkt
digital asset platform are planned.