Published: Wed, December 06, 2017
Finance | By Loren Pratt

Cboe wins race to launch bitcoin futures contract

Cboe wins race to launch bitcoin futures contract

As of 8:16 a.m., ET, bitcoin traded up 9% at $12,765, according to industry site CoinDesk. The price dipped to $11,972.10 at 14:54:12 UTC.

Last week Goldman Sachs CEO Lloyd Blankfein claimed that Bitcoin was "a vehicle to perpetrate fraud" as the value of the cryptocurrency plunged 20% in less than 24 hours. Bitcoin commanded 56.2% of the total crypto market today, with Ethereum holding 12.55%.

Elsewhere in cryptocurrency trading, was last at $1,401.30, while was at $262.38. However, the introduction of the Bitcoin futures is considered as the stepping stone for legitimizing the currency, and in the near future, it may be considered as an everyday investment. Altcoins have also benefitted from bitcoin's gains.

The main United States derivatives regulator said on Friday it would allow CME Group Inc and CBOE Global Markets Inc to list Bitcoin futures contracts, opening the door to added regulation. Also, the US' second largest exchange, NASDAQ is considering supporting Bitcoin futures in mid-2018.

Cboe's bitcoin futures contract will trade under the ticker symbol "XBT" and will be cash-settled based on the auction price from cryptocurrency exchange Gemini, Cboe said on Monday. Cboe will waive trading fees for these products for the duration of December. CME Group also made the decision to introduce its own Bitcoin futures offering on its exchange platform later this month on December 18.


"What's interesting about bitcoin futures is that you'll have the ability to take both sides of bitcoin-it's a two-sided market, you can go long or you can go short", Hagen said.

EXCLUSIVE-Bitcoin futures are the ideal medium for investors curious about cryptocurrency, as they allow customers to play "both sides" of the market, Rich Hagen, president of Ally Invest, told Bank Innovation.

"Bitcoin futures trading on the major stock exchanges would provide more assurance for retail investors that the derivative is trading in a regulatory frame work".

Featured image from Shutterstock.

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