CME Group sets date for Bitcoin futures launch

CME Group sets date for Bitcoin futures launch

CME Group sets date for Bitcoin futures launch

Bitcoin has taken another step toward the financial mainstream, after a USA regulator said it would let two traditional exchanges begin trading in Bitcoin-related financial contracts.

The price of bitcoin futures will be based on the price the digital currency is going for on four major bitcoin exchanges - Bitstamp, GDAX, itBit and Kraken.

Naeem Aslam, Think Markets analyst, said that the reports Britain wants to hike regulation of bitcoin and other digital currencies.

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. CBOE's stock has run up 68% year to date, while the S&P 500 has gained 18%.

Bitcoin's price has soared tenfold this year, but many market participants warn of a bubble as it topped $11,000 for the first time last week.

Cboe's bitcoin futures will trade on CFE under the ticker symbol 'XBT.' XBTSM futures are cash-settled contracts based on Gemini's auction price for bitcoin, denominated in USA dollars. The first bitcoin futures contracts on a regulated US exchange are set to launch on Sunday.

On the US -based Bitfinex exchange, fell to $11,131, down $31, or 0.28% after hitting an all-time high of $11,843 earlier in the session.

Ed Tilly, Chairman and Chief Executive Officer of Cboe Global Markets, said: "Given the unprecedented interest in bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure".

On Friday, December 1, Cboe announced that CFE had filed a product certification with the Commodity Futures Trading Commission (CFTC) to offer bitcoin futures trading. CBOE will derive its bitcoin contract price from the Gemini bitcoin exchange, which is owned by the Winklevoss twins, Cameron and Tyler.

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