CBOE to launch bitcoin futures this week

Posted: 4 December 2017 1:58 pm

Futures trading begins December 10 and will be free of charge throughout the month of December.

The largest US options exchange, CBOE, has announced it will launch bitcoin futures from Sunday December 10, ahead of Chicago Mercantile Exchange (CME), who plan to begin offering futures trading from December 18.

The Chicago-based platform aims to be the first to offer investors the option to buy bitcoin futures.

The CBOE Futures Exchange will begin trading in bitcoin futures from 6pm ET Sunday. The following day, December 11, will mark the first full day of trading. Trading will be free of charge throughout December.

CBOE’s bitcoin futures will trade under the ticker symbol “XBT”. These futures are cash-settled contracts denominated in US dollars. CBOE says XBT futures are specifically designed to allow participants to implement straightforward trading strategies, through settlement to a single tradeable auction price.

The Chicago Mercantile Exchange (CME) revealed its own plans to launch bitcoin futures on December 18, 2017. Futures are already being tested and will be based on the underlying CME CF Bitcoin Reference Rate value.

However, clearing and trading startup LedgerX matched a trade on its platform late last month in what it claims to be the first-ever bitcoin futures call in history. The long-term equity trade was matched by the platform on November 18, 2017 and is due to expire on December 28, 2018. It was for a $10,000 strike, traded at $2,250.25.

Despite a 20% fall last week, bitcoin’s value has reached another record milestone, exceeding $11,700 on Sunday December 3 and continuing to make gains this week, according to coindesk’s Bitcoin Price Index.

Long-term future pricing options could be seen as a vote of confidence for the virtual currency, potentially paving the way for less market volatility and further increased investment over time.

The total value of global bitcoin market capitalization has grown from less than $1 billion five years ago to over $183 billion in 2017, including a daily turnover of around $10 billion, according to coinmarketcap.

Discover more about cryptocurrencies and learn how to properly invest in the world of digital currencies.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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