Cboe launching Bitcoin Future earlier than CME

  • Cboe launching Bitcoin Future earlier than CME

Cboe launching Bitcoin Future earlier than CME

On Friday a USA federal regulator gave the go ahead to the CME Group to start trading bitcoin futures later this month, the first time the digital currency will be traded on a Wall Street exchange and subject to federal oversight. 10, with the first full day of trading set for December 11, the firm said Monday. The cryptocurrency is now trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).

A huge price run-up this year has sparked intense investor interest in bitcoin, which soared to more than $11,800 at one point on Sunday, up more than 12-fold from the beginning of 2017, according to CoinDesk.

Cboe Global Markets Inc. said Monday it will start trading bitcoin futures on December 10, after getting the green light last week from regulators. Its price has jumped more than tenfold this year. At 19:54 UTC on Monday, bitcoin was trading at $11,237.19, unchanged in the last 24 hours.

The new contract will be listed on, and subject to the rules of, CME.

CME to launch bitcoin futures trading on December 18
CME to launch Bitcoin derivatives trading in December

It means that investors will be able to buy and sell "future" contracts in Bitcoins - an agreement to buy the crypto-currency, for example, in three months time at a certain price. "We are committed to encouraging fairness and liquidity in the bitcoin market", said Ed Tilly, chairman and CEO of Cboe Global Markets, in a statement.

Bitcoin futures would allow traders to bet on rises and falls in the digital currency, similar to the way oil, corn or gold futures work.

Announcements by Cboe and CME that they would seek to launch bitcoin futures were seen as a vote of confidence in the digital currency. CBOE will derive its bitcoin contract price from the Gemini bitcoin exchange, which is owned by the Winklevoss twins, Cameron and Tyler.

Last week, a JPMorgan global markets strategist forecast that the introduction of bitcoin futures would legitimize cryptocurrency in the eyes of both institutional and retail investors, transforming the cryptocurrencies into "an emerging asset class".