Exchanges Set To Launch Bitcoin Futures Trading

Posted December 05, 2017

Bitcoin has taken another step toward the financial mainstream, after a U.S. regulator said it would let two traditional exchanges begin trading in Bitcoin-related financial contracts. XBTSM futures are cash-settled contracts based on Gemini's auction price for bitcoin. "We are committed to encouraging fairness and liquidity in bitcoin markets". Not only will it provide professional traders with the ability to short bitcoin for the first time, but it will also open the door to the creation of a Bitcoin ETF and likely entice Wall Street firms to step off the sidelines and engage directly with bitcoin and other digital assets. CBOE's stock has run up 68% year to date, while the S&P 500 has gained 18%. Bitcoin's market capitalization reached $192.3 billion on Monday afternoon Beijing time, as the price of the cryptocurrency surged to $11,503, according to data provider CoinMarketCap. The cryptocurrency is now trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).

Cboe Global Markets Inc will launch trading in its bitcoin futures contract on december 10, just over a week ahead of rival CME Group Inc. CBOE has already expressed its desire to list these products, and - just this week - The Wall Street Journal reported Nasdaq Inc. hopes to list bitcoin futures on one of its USA exchanges during the first half of 2018.

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

At CBOE, the contract limit is 5,000.

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".

The Commodity Futures Trading Commission said it had discussions with the exchanges to protect consumers from extreme price swings.