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Screenshot of a breaking news alert e-mail from Q2 2017
CME Group is now in the process of launching the first bitcoin futures and the event is scheduled to take place by December 18, 2017. This will eventually put an end to doubts whether the derivatives “giant” will trust that the new bitcoin-related product will be successful or not.
What is more, CME reported that they have received approval from the U.S. Commodity Futures Trading Commission (CFTC) to proceed with the launch. With the high ups and downs of bitcoin, and the enormous amount of speculation that the product is actually a “bubble”, a product not backed up by earnings or earnings potential. So, now the CME take on bitcoin futures seem to excite the market and investors, with the price going up to$11,300 per coin, though the current price is now at around $9,800.
The CEO of CME Group, Terry Duffy reported, according to Coindesk:
“We are pleased to bring bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities.”
Pete Rizzo from Coindesk also said:
“The cash-settled contracts will notably find investors buying exposure to a custom reference rate created by CME and partner Crypto Facilities, and will not require the custody of the underlying asset.
Still, at launch, Duffy explained the bitcoin futures product will be subject to risk management tools, including a margin of 35 percent, position and intraday price limits. The new contract will be traded on the CME Globex platform.”
With the current volatility of the crypto market and in particular, of bitcoin, leaves many investors wondering what will eventually happen to the digital currency and whether the involvement of CME Group and other large financial players will put stability on the market and greater trust in people about bitcoin and its potential.