Bitcoin Futures Could Open the Way Into Crypto Markets

Bitcoin Futures Could Open the Way Into Crypto Markets

Bitcoin Futures Could Open the Way Into Crypto Markets

$BTCUSD

Bitcoin is spiking to a record after CME Group Inc.(NASDAQ:CME) said it’s planning to launch Bitcoin futures as the move could open the way for investors who have been standing on the sidelines as Bitcoin soared over 500% YTD.

The cryptocurrency marked a high at 6,416.39 after the CME said it will start offering trading the derivatives in the fourth quarter.

Futures will be settled in cash based on a Bitcoin index that CME started calculating in November.

The move comes after the Chicago Board Options Exchange (NASDAQ:CBOE) said in August it’s exploring Bitcoin derivatives opportunities, while the Commodity Futures Trading Commission (CFTC) in July registered cryptocurrency trading platform LedgerX as the first federally regulated cryptocurrency derivatives exchange and clearinghouse.

With Bitcoin futures becoming mainstream, the next logical step seems to be a bitcoin exchange-traded fund, as the Securities and Exchange Commission (SEC) had cited the lack of derivatives as one of the reasons for rejecting approval of the funds.

ETFs and derivatives are likely to make Bitcoin trading a lot more palatable for hedge funds and mutual funds, as the instruments will allow them to hedge for the digital asset’s volatility and avoid some of the hassles of investing in bitcoin directly.

Stay tuned..

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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