Bitcoin Spikes as CME Exchange Announces Futures

Bitcoin Spikes as CME Exchange Announces Futures

Bitcoin Spikes as CME Exchange Announces Futures

$BTCUSD, $CME, $CBOE

CME Group Inc., (NASDAQ:CME) the world’s biggest exchange operator, plans to introduce bitcoin futures, a development that could help professional traders and investors finally get serious about the cryptocurrency.

Bitcoin (BTC/USD) surged to a record high at 6,399.005 after the announcement.

The Chicago-based firm, a giant in trading with products including futures on the S&P 500, Crude Oil and Gold wants to introduce the contracts by the end of this year, pending regulatory approval, according to a statement Tuesday.

Many big investors have been wary of getting into digital currencies like Bitcoin in part because it has been difficult to find the liquidity they need to do big trades that move the needle on their performance.

A strong derivatives market could help alleviate that problem by giving market makers an instrument to hedge their positions. It could also pave the way for ETFs (exchange-traded funds).

The timing of the decision is a surprise.

Just a month ago, CME President Bryan Durkin said on TV that “I really don’t see us going forward with a futures contract in the very near future.”

And last week, CEO Terry Duffy said CME “could be quite successful in the crypto world if we go down that path.”

CME is following a Chicago-based rival exchange operator, CBOE Global Markets Inc., in announcing plans for Bitcoin futures. CBOE hopes to get its product trading by the end of Q-1 Y 2018.

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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