Right on cure for Halloween the CME announced it will be launching futures contracts for the cryptocurrency Bitcoin in Q4 2107 once regulatory measures are completed. Also right on cue Bitcoin launced to new all time highs.
Right on cure for Halloween the CME announced it will be launching futures contracts for the cryptocurrency Bitcoin in Q4 2107 once regulatory measures are completed. Also right on cue Bitcoin launced to new all time highs of $6416.39. In the process.
The new contract will be settled in cash, based on the CME CF Bitcoin Reference Rate (BRR). The rate will be settled at a set time like all other futures settlement prices other than limit ups or downs. It will using a U.S. dollar price of Bitcoin.
It will be interesting what daily limits will be applied to Bitcoin given its volatility. Bitcoin has recieved a new lease of life of late. Just a few weeks ago we saw Bitcoin Up $1000 Since Jamie Dimon Said Not Talking About It Anymore .
“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract . As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”said Terry Duffy, CME Group Chairman and Chief Executive Officer in a press release.
There are two sides of this coin so to speak yes it makes it more easily assessible to a broader market but it also increases liquidity and the risk of outside influences. Cue the conspiracy theories of JPMorgan and silver prices. So is it a trick or treat?
In reality we see this as another opportunistic money grab by a greedy exchange. Just yesterday we saw the LME to Add Battery Metals Lithium & Cobalt Futures Contracts.
From The Traders Community News Desk