The CBOE and the CME are racing to see who will be the first to offer Bitcoin futures. According to an announcement made by the CBOE, it will introduce Bitcoin Futures on Sunday December the 10th. In this way, the Chicago Mercantile Exchange (CME) will not be the first Futures Exchange to offer Bitcoin to its customers.
CBOE Bitcoin Futures the Next Sunday
The competition between the CBOE and the CME has been increasing in the last weeks. The first to announce Bitcoin futures was the CBOE in August. Later this year, the CME has decided to make public that they were going to list the famous cryptocurrency on December the 18th.
Both exchanges are known worldwide to be among the largest U.S. options exchange, both managing several billion dollars.
“This brings many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. XBT futures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions,” reads the CBOE statement.
Bitcoin futures will allow different institutional investors to have a first approach to the cryptocurrency world. Many of them do not trust regular trading platforms, but instead they prefer to trade in exchanges with the endorsement of the U.S. Commodity Futures Trading Commission (CFTC).
Institutional Investors Landing in the Market
Several hedge funds are starting to operate exclusively with cryptocurrencies. At UseTheBitcoin we have reported how Michael Arrington has launched a new $100 million hedge fund denominated in Ripple (XRP).
In other news, Nasdaq Inc will also launch Bitcoin futures in 2018. One of the biggest stock markets in the world will offer a cryptocurrency to its customers. That is in line with all the other announcements by different agencies and investors.
The cryptocurrency market has called the attention of the mainstream financial community due to the amazing year we have experienced. Bitcoin, Ethereum, Ripple and other cryptocurrencies have skyrocketed this year and the total virtual currency market capitalization has arrived at $300 billion dollars.
Image Source: news.medill.northwestern.edu