Markets

Cboe Beats CME to Bitcoin Futures Launch With Dec. 10 Start

Cboe Beats CME to Bitcoin Futures Launch With Dec. 10 Start

Cboe and CME got approval from the USA derivatives regulator to list bitcoin futures on Friday, after the rival bourses were able to show that their proposed contracts and trading arrangements met the necessary regulatory requirements. The regulatory process used is called self-certification.

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. This memorandum is considered advertising under applicable state laws.

CME's bitcoin futures will be based on a "Bitcoin Reference Rate", which the company describes as "a once-a-day reference rate" based on the US-dollar price of the coins.

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

CME Group's Bitcoin futures will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the US dollar price of bitcoin.

Bitcoin has gained more mainstream attention lately as its price has soared on the private exchanges. The first bitcoin futures contracts on a regulated USA exchange are set to launch on Sunday.

As per the analysts, the main derivatives of United States regulates that it would permit CME Group Inc and CBOE Global Markets to list bitcoin futures contracts, which had turned sentiment positive after a choppy week.

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.

At CBOE, the contract limit is 5,000. At the time in August, the CBOE was working with New York-based bitcoin exchange Gemini, which is run by investors Cameron and Tyler Winklevoss, ahead of the launch. Bitstamp, GDAX, itBit and Kraken are the constituent exchanges that now contribute the pricing data for calculating the BRR.

The announcement from the Commodity Futures Trading Commission (CFTC) that it will allow the futures to be traded was seen as a watershed moment for the currency. Those amounts may become higher in the future. The entry of institutional money is also expected to act as a stabilizing mechanism for the cryptocurrency's recent wild price swings.