London-based cryptocurrency exchange Crypto Facilities have announced today that they are launching a litecoin derivative product.
According to the report in coindesk, the new instrument will allow traders to long and short futures contracts with litecoin as the underlying collateral, and will go live this Friday June 22nd.
Timo Schlaefer, CEO of Crypto Facilities, emphasised the demand for the product, commenting:
“We are excited to be launching futures on Litecoin, one of the most widely traded cryptocurrencies. There has been strong client demand for this product and we believe our LTC-Dollar futures contracts will increase price transparency, liquidity, and efficiency in the cryptocurrency markets. As digital assets continue to mature, we expect to see a greater number of institutional investors entering the marketplace.”
Litecoin founder Charlie Lee also expressed his optimism about this development for litecoin, touting the potential for the new listing to improve the coin’s liquidity and “help people get in and out of litecoin.”
Crypto Facilities last month became the first in the world to offer ether futures and are reportedly expecting the trading volume of its ethereum futures contracts to hit $150m this quarter.
This latest addition might also mean that CME group - a partner of Crypto Facilities for ether pricing data - could be set to add litecoin futures - as well as raising the possiblity of a "Litecoin-Dollar Reference Rate" and "Litecoin-Dollar Real-Time Index."
With litecoin currently trading at $96.14 according to CryptoCompare, it remains to be seen whether the news will help the coin push beyond the $100 mark.