Cryptocurrency investor Roger Ver’s Bitcoin.com is in talks with Bitcoin Cash (BCH) to launch a futures contract. David Shin, the company’s head of the exchange division, dropped the revelations regarding the prospect. The company is also working on different plans to enhance its interest in Bitcoin Cash together with the futures contract.
Futures Contract to Make the Cryptocurrency Third Largest
The introduction of the futures contract will have the goal of increasing the company’s market capitalization of cryptocurrency. This will make it the second-biggest crypto behind Bitcoin. Shin confirmed that within a year they want to create the second- or third-largest crypto by market cap. He added that to move from fourth to third or second, the company would need to see more volume.
Currently, talks are ongoing to list BCH derivate products on the Commodity Futures Trading Commission. With no CFTC-regulated exchange offering Bitcoin Cash futures, this push will enhance trading volumes as well as liquidity, which will then boost the market cap of BCH.
Bitcoin Cash is currently the world’s fourth-largest cryptocurrency in terms of CoinMarketCap. To move even one place the crypto will have to double its market cap, as XRP, which is the third-largest crypto, currently sits at a $10.9 billion market capitalization. According to Coindesk data, on Thursday, BCH was trading at $300 per coin with an estimated market cap of around $5.4 billion.
Bitcoin.com to Approach CME Group to List a BCH Futures Instrument
Shin also indicated that the company had begun discussions with a US-regulated crypto futures exchange. There are also plans to approach the Chicago Mercantile Exchange Group (CME) with a proposal to list a BCH-backed futures tool. Crypto futures are a new phenomenon to US investors, and CME is the main distributor of Bitcoin futures in the US. It is already planning to unveil another Bitcoin derivative product.
Shin said that the company will try and list Bitcoin Cash futures on one of the exchanges that are CFTC-regulated. This will enhance the company’s reach, which means it will have more users and trading, which will boost volumes.
Featured image: DepositPhotos © merznatalia