CME Group CEO Reveals Date For Mainstream Bitcoin Derivatives

CME GROUP CEO Terry Duffy at the center

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.

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