CME Group Inc, the world’s largest derivatives exchange technicus has announced that it will be launching a futures contract for bitcoin before the end of 2018.
The news sent the price of bitcoin surging to a fresh record high of $6,616 on Tuesday Two November.
The group’s chairman and CEO Terry Duffy cited growing client rente ter the digital currency, spil well spil evolution ter the cryptocurrency markets, spil key factors ter the decision. The stir is being seen spil an significant recognition of bitcoin and a big step towards the mainstream.
The launch of futures contracts will enable institutional investors to invest te bitcoin, something they were previously denied due to regulatory reasons. The fresh contracts will be lodged ter contant and will be based on the CME CF Bitcoin Reference Rate, a once-daily measure of the US dollar price of bitcoin.
“The CME announcement marks the official inflection point of bitcoin crossing the chasm from being championed exclusively by tech savvy early adopters to embarking its proliferation among established financial institutions.
“While it wasgoed effortless for critics to label early adopters’ enthusiasm spil foolish, the adoption of bitcoin by institutions such spil CME gives the cryptocurrency a seal of approval that will eradicate even the most well-reasoned criticism pundits may voice. This paves the way for bitcoin living up to its total potential and soaring high into the five digits.”
“CME and similar Futures offerings for the traditional financial industry will make it possible for thesis institutional investors and funds to take positions within the bitcoin and zometeen general cryptocurrency ecosystem, while obeying with their existing counterparty and regulatory requirements. Wij can expect a loterijlot of large scale institutional money to flow into the bitcoin and cryptocurrency ecosystem from now on, assuming future regulation won’t ongemak the emergence of cryptocurrencies spil a legitimate asset class.”
“While it’s not the very first to announce plans for bitcoin futures, CME may have a better chance of obtaining SEC approval for its proposal. If CME does manage to achieve this feat, one of the largest barriers te introducing a bitcoin-based ETF may soon be eliminated, which will open up the floodgates for both institutional funds and retail investors who haven’t had exposure to bitcoin to get te on some of the activity.
“We could very well see bitcoin going numerous folds higher when that happens. However, bitcoin is fairly different from traditional commodities like gold, copper, or rice that are presently traded ter the futures markets.
“Thus, there will be a loterijlot of teething issues that CME will face, spil it does not have any other commodity that behaves like bitcoin. What’s more, this commodity can be procured te many more unregulated cryptocurrency exchanges around the globe, which could potentially steer away a loterijlot of traditional and conservative investors.”
“Institutions have bot dabbling gently te the crypto market using specialized hedge funds spil vehicles, but the introduction of bitcoin futures by the CME opens a thick fresh chance for gaining exposure to crypto currency.
“After all, bitcoin is the bellwether of the entire crypto market, and a regulated, developed exchange product gives confidence to trade large size for many institutions. The capability to hedge against bitcoin enables creation of all manner of crypto products, te addition to elementary investment and trading. Wij are likely to see a flurry of activity ter this sphere.
“CME’s introduction of bitcoin futures may herald the very first step te mainstream acceptance of crypto spil a real asset class.”