Things are looking bright for bitcoin with its price hitting new highs on its birthday as well as today and an announcement that world’s first regulated bitcoin futures trading could be launched before end of this year.
CME Group, which is the world’s leading and diverse derivatives marketplace, has revealed in an announcement that it is striving to launch world’s first regulated bitcoin futures trading within just two months pending all the regulatory reviews and procedures. If the launch does happen, it will pave way for institutions to use bitcoin as a hedge thereby cashing in on the surge in bitcoin price.
Terry Duffy, CME Group Chairman and Chief Executive Officer, says that CME group is the world’s largest regulated FX marketplace and it is natural for the group to offer bitcoin futures trading to its clients as well as investors that is backed by transparency, price discovery and risk transfer capabilities.
CME Group is the “world’s largest options and futures exchange,” with some $3 billion yearly revenue servicing US and UK markets.
They are to use their own CME CF Bitcoin Reference Rate (BRR) for cash-settling new contracts, with the rate serving as a “once-a-day reference rate of the U.S. dollar price of bitcoin.” That’s designed in partnership with the London based Crypto Facilities.
It remains to be seen whether American regulators, which in this case would be the somewhat crypto-friendly CFTC, will give the green light.
If they do, then bitcoin’s liquidity might considerably increase as the year closes, with the $100 billion market becoming somewhat more mature and potentially less volatile.