Huobi to Offer XRP Futures Contracts 'Very Soon', Says Exchange's General Counsel

  • Huobi's head of institutional business revealed the exchange will soon offer XRP futures contracts.
  • More financial products will be released this year as well.

Singapore-based digital currency exchange Huobi is reportedly planning to issue XRP derivatives contracts in the “very near future” as the digital asset technology firm expands its line of products and services.

Huobi To Launch XRP Futures "Very Soon"

Similar to how other major cryptoasset exchanges are diversifying their business strategy to better serve different types of investors, Huobi’s general counsel Josh Goodbody told CryptoBriefing that the trading platform provider will be introducing XRP futures contracts through its Huobi Derivatives Market (DM) “very soon.” Goodbody, who’s also the head of global sales and institutional business at Huobi, said that the company intends to launch more cryptocurrency contracts and other types of financial products this year.

Although Goodboy did not reveal the exact date on which XRP futures would be available on Huobi’s platform, he said they would be offered in the near future and that “additional types of cryptoassets” may be listed on the exchange. Goodboy added that “the time between [different product] launches [could] get shorter and shorter.”

At present, Seychelles-registered crypto derivatives trading platform BitMEX and Hong Kong-operated exchange Bitfinex offer different types of digital currency futures contracts. Futures contracts, which are essentially agreements that allow traders to exchange an asset at a particular price at a certain date in the future, are also offered by Chicago’s CME and the Cboe. Both these exchanges introduced bitcoin (BTC) futures in December 2017.

Huobi's Futures Contracts Not Available To US Traders

In November 2018, Huobi had announced its plans for launching its own derivatives markets (DM), which was introduced last month. Traders are now able to purchase both bitcoin and ether (ETH) futures contracts through Huobi’s DM. EOS futures were also added in late December 2018.

Currently, Huobi’s crypto futures contracts may be purchased by investors in almost all jurisdictions except for those located in Singapore, China, and the US.

On January 25th, Huobi announced that its derivatives markets would allow traders to take both short and long positions on litecoin (LTC), which allows for “arbitrage, speculation, and hedging.” Commenting on Huobi’s new offerings, Goodboy remarked that the company had been “quietly confident” about its new crypto futures contracts.

"Continuing To Build Institutional-Grade Products"

Significantly, Huobi’s DMs have recorded approximately $10 billion in trading volume since the start of this year. Last week, Huobi revealed that its total trading volume had exceeded $20 billion since the company launched.

Explaining Huobi’s business development goals, Goodbody remarked:

In the long term, we are going to continue building institutional-grade products, to further support, and capitalise, on the belief we have in the continuing involvement of institutional players.

Malta-based cryptoasset exchange Binance has also started the new year by launching new services including its over-the-counter (OTC) trading desk. Other trading platforms looking to expand their offerings such as Hong Kong’s AAX crypto exchange recently purchased proprietary trading software from the London Stock Exchange technology group.

Crypto Trading Volumes Plummet in June, CryptoCompare Report Shows

Cryptocurrency trading volumes plummeted in June to “roughly half of the daily volumes” seen in May, according to the CryptoCompare June 2020 Exchange review report.

The report found that top-tier cryptocurrency exchanges, those with a high ranking on CryptoCompare’s Exchange Benchmark,  saw their trading volumes saw their spot trading volumes drop by 36% last month to $177 billion, while lower-tier cryptoassets exchanges saw their trading volumes drop by 53% to $466 billion.

unnamed.pngSource: CryptoCompare

CryptoCompare notes that last month the highest recorded trading volume in a single day on top-tier exchanges was of $9.26 billion. In comparison, in March’s Exchange Review, the cryptoassets data provider revealed that the March 12-13 crypto market crash led to high in daily trading volumes, as $75.9 billion were traded across exchanges in a single day. Top-tier exchanges traded $21.6 billion that day.

It’s worth noting that the spot volumes did not hit an all-time high, even during the March market crash. In July 2019 and December 2017, when the price of bitcoin hit its all-time high near $20,000, spot volumes hit record highs.

In June, cryptoassets trading platforms charging traditional taker fees represented 76% of the total exchange volumes, while those implementing the tans-fee mining (TFM) model represented less than 23% of the cryptocurrency space’s spot volume.

Fee-charging exchanges, the report adds, traded a total of $455 billion in June, as their trading volume dropped 48% since May. Trading platforms using the trans-fee mining model saw their volumes drop 45% since May, as they traded $141 billion.

Exchanges using the TFM model are seemingly gaining market share. While in March they represented less than 20% of the spot trading volume, in June their market share was of 23%.  As CryptoGlobe reported, these trading platforms often have unusually thin order books and low traffic.

FCoin, the cryptocurrency exchanges that started using TFM, has passed trading and withdrawals earlier this year over the shortage of crypto worth up to $130 million. The firm’s founder revealed that the platform was not hacked, but instead an internal system error gave users more rewards than they should have received.

Featured image by Austin Distel on Unsplash.