CME Group CEO Reveals Date For Mainstream Bitcoin Derivatives

CME Group CEO Reveals Date For Mainstream Bitcoin Derivatives

CME announced at the end of October that it would launch a bitcoin futures product by year-end. At the time, the news provoked a tremendous surge in the price of bitcoin, which escalated by nearly $1,000 in just a week since the announcement. Following the example of CME Group, major futures market in Argentina, Mercado de Termino de Rosario, disclosed its intention to offer bitcoin futures to investors.

"I'm not trying to rein in the volatility of bitcoin", Duffy said.

This point, when Bitcoin futures and ETF-s will be there for mainstream and traditional investors, marks a moment of comfortable-made zone to being investing directly into cryptocurrency and the technology.

The goal of futures, says Duffy, isn't to cool volatility, but instead to give folks a place hedge risk, and - if wanted - short bitcoin. So there's only one way it can go.

Still, he noted that the exchange might be halted for an hour in case of serious fluctuations.

"I'm not going to let it go to zero", he said, adding that if the exchange has rules in place to handle liquidation-only events.

Bitcoin had a wild weekend, plunging more than $1,000 from Saturday's high of $6,827.72 to Sunday's low of $5,507.29, according to CoinDesk. The digital currency then almost recovered all those losses to hit a high of $6,770.37 Monday, before trading near $6,360. However, the price has recovered then, rising to about $6,400. At the time, CME said that the futures would be tied to its existing price index, launched in 2016, and be settled via cash.

So with the CME being the world's largest regulated FX marketplace, their impending Bitcoin futures will likely create, or initiate, a bona-fide boom in institutional and mainstream interest in Bitcoin and cryptocurrencies in general the likes of which the space hasn't seen before.



Latest news

HSBC To Pay €300M To Settle French Tax Probe Into Swiss Arm
The settlement was the first in France under a new law passed previous year modeled on US deferred prosecution agreements. It also said that two former directors of HSBC's Swiss private bank remained subject to possible legal action.

Stocks Rating Report: Citigroup Inc. (C), Kinross Gold Corporation (KGC)
Its minimum price target estimates has been figured out at $3.75 while the maximum price target forecast is established at $7.07. Geode Capital Management LLC raised its position in shares of Kinross Gold Corporation by 8.1% during the 1st quarter.

United Kingdom faces 'catastrophic' border chaos if customs are not fixed before Brexit
The committee said HMRC should begin talking to traders immediately, rather than waiting until a new arrangement was agreed. During the transition between the two systems, the old version would operate in tandem with the new one, he added.

Alliancebernstein LP Marginally Lowers Its Investment in Gilead Sciences Inc (GILD) Stock
Gabelli Funds Llc increased Stericycle Inc Com (NASDAQ:SRCL) stake by 65,000 shares to 88,000 valued at $6.72 million in 2017Q2. Advsrs Preferred Ltd Llc holds 899 shares. (NASDAQ: GILD ) has "Neutral" rating given on Friday, January 15 by Bank of America.

BB&T Corporation (BBT) Stake Decreased by Comerica Bank
Vaughan David Investments Inc/il reports that it lowered its ownership in BB&T Corp by 0.4% as reported in a filing on 11/13/2017. The stock of BB&T Corporation (NYSE:BBT) earned "Underperform" rating by Macquarie Research on Thursday, October 20.

Other news