The LedgerX derivatives platform is going to launch most likely this month and with it brings many exciting possibilities to who and what amount/kind of investment comes into bitcoin. If you are unaware LedgerX is a derivatives platform run in accordance and within legal status of the CFTC. This means that it creates a legal way for big firms to trade and bet on the future of bitcoin. Were not talking small amounts, but were talking Wall Street levels of money.
Most firms that will partake in trades with LedgerX need at least 10 million in assets in order to trade. In addition this allows family offices to partake with over 10 million in assets as well, so rich people looking to store their money elsewhere. Instead of having the physical bitcoin they will be able to trade through a legal entity as ledgerX. For many people this might be the turning point for them at which point they would invest into the currency. For the same reason the ETF would reach out to people who don’t want to hold their own coins, LedgerX will do the same.
Were talking about potential amounts of money that we only dreamed of up until this point, because in all reality, its hard to imagine the amount of institutional money out there. Even if the average consumer is never able to purchase bitcoin, Wall Street still hasn’t been able to either. Everyone who is here today is still in before Wall Street and other big institutions. Valuations that might have seemed crazy a few years ago might be possible in the next few. After creating a route like LedgerX for big money to enter, things could get crazy very quickly.
Perhaps the most important thing about LedgerX is the potential for it to become the building block for an eventual ETF. In the Winklevoss denial the biggest complaint was there wasn’t a good price discovery mechanism that was regulated, but now there will be. If that happens your parents or grandparents could simply buy an ETF from any brokerage like they would a stock.