DRW calls for physical settlement of bitcoin futures

Prop shop’s head of market structure says underlying spot exchanges are not transparent enough

The head of market structure at Chicago-based trading firm DRW Holdings has warned that the current settlement mechanism for bitcoin futures could disrupt the market and called for the contracts to be physically settled.   

“We continue to have concerns that the way these futures contracts are pegged to these cash markets – which are less transparent – could result in dislocations in the future,” Richard Gorelick said at a meeting of the Commodity Futures Trading Commission’s Technology Advisor