USA regulator allows trading in Bitcoin related financial contracts
Dec 05 2017
Cboe Global Markets Inc. said Monday it will start trading bitcoin futures on December 10, after getting the green light last week from regulators.
Trading will begin, under the ticker symbol "XBT", at the start of global trading hours at 6 p.m. ET, and will be free through December.
CME is not the only USA exchange that is going to add bitcoin futures to their product offerings.
To view the full article, register now. (NASDAQ:) has said its contracts will begin trading December 18. The cryptocurrency is now trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).
Bitcoin's rapid rise from less than US$800 in December a year ago to more than US$11,000 this week on Coindesk has stoked fears that it is a pricing bubble that could leave recent investors worse-off.
The cryptocurrency was last up 0.4 percent at $11,290. "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. But there are a couple of differences between bitcoin futures trading at the two exchanges.
Bitcoin futures and other derivatives would make it easier for more investors and speculators to trade the new asset class.
The introduction of futures from both Cboe and CME may entice more professional traders and investors to join the cryptocurrency market by shifting transactions onto regulated exchanges.
CME's bitcoin futures will be based on a "Bitcoin Reference Rate", which the company describes as "a once-a-day reference rate" based on the US-dollar price of the coins. CBOE will derive its bitcoin contract price from the Gemini bitcoin exchange, which is owned by the Winklevoss twins, Cameron and Tyler.
The Commodity Futures Trading Commission said it had discussions with the exchanges to protect consumers from extreme price swings. One bitcoin was worth just a fraction of a penny when it started trading in 2010, and by the start of this year was worth $1,000.