New Delhi, December 20, 2017: The launch of Bitcoin futures on the CME represents a decisive step towards the ‘financialisation’ of Bitcoin. If anything, the CME is a much bigger player than the CBOE and it will enable institutional investors, who have mostly avoided trading in the cryptocurrency, to take positions betting for or hedging against its price movements. While large trading firms and Bitcoin miners are expected to be the major players in Bitcoin futures, retail investors can also profit from its volatility.
Unlike the futures on the CBOE, the contracts on the CME are based on the Bitcoin Reference Rate (BRR) index, which aggregates Bitcoin trading activity across four Bitcoin exchanges – itBit, Kraken, Bitstamp, and GDAX – between 3pm and 4pm GMT. Some investors believe this has the potential to attract more institutional investors as the final settlement price does not depend on a single closing auction from the Gemini exchange as is the case for the CBOE contract.
Although the general excitement is evident, the market remains cautious and that has been reflected in high margin requirements for the contracts. However, Bitcoin’s continued growth is likely to receive a further boost given its exposure as a mainstream asset, as more investors may to flock to the asset.
Corporate Comm India(CCI Newswire)
