LedgerX has initiated its first long-term Bitcoin (TIKER: BTC.EXANTE) futures option. Called a Long-Term Equity Anticipation Security (LEAPS), the trade was matched by the platform this morning and is set to expire on December 28, 2018, CoinDesk reported.
LedgerX CEO Paul Chou said in an interview with CoinDesk that the milestone is just the first of many more before the cryptocurrency market can truly be considered mature.
Chou said: "There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what Bitcoin's dynamics will look like from now until 2018."
Under the terms of the deal, the buyer has the right to buy Bitcoin at a price of $10,000 at that date, or almost a 30 percent premium on today's price.
Two institutional investors agreed to the terms of the deal just a day after the trade option was listed by LedgerX.
The buyer agreed to a price of $2,250.25 for the trade, meaning the seller collects that money if the price is less than $10,000 by the end of next year, and the buyer gets to purchase Bitcoin at the strike price if it is higher. However, the buyer is not obliged to purchase the asset.
"If the price goes to zero, you don't have to pay $10,000 for it," Chou said. "But if a year from now it's at $20,000, then you can exercise your options."
Based on its own calculations, LedgerX believes there is a 25 percent chance that Bitcoin will reach that level in the allotted time.