Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) have released the details on the upcoming futures trading for the cryptocurrency called as Bitcoin. Both the companies are planning to launch the Bitcoin’s contracts which is hiding any legal or regulatory delays.
CME had already announced in the beginning that its Bitcoin future product will be available for trading on December 11. Anyhow, Reuters says, that was an error and the actual date has yet been set. CME’s website now states that the Bitcoin futures will come sometimes before the end of the year. The contracts will be 5 BTC, and the spot position limits will be set for 1000 contracts. Moreover, the tick ( the smallest possible price variations) are set for $5 each BTC in a contract, or $25 overall.
The CBOE had also released the details according to their intention to begin offering the Bitcoin futures products under the ticker XBT. While still under regulatory review, the CBOE blog contains the specific details on the nature of the future contracts. Unlike the CME contracts, CBOE contracts will be 1BTC, and the trick is set for $10.
Both the announcements had become headline news and have driven the Bitcoin price to a new level. When the future remains unclear, the adoption by the institutions will certainly have the positive advantages for the cryptocurrency.
CBOE CFA Russel Rhoads says:
“The question I am constantly hearing is, “How will the futures prices relate to spot Bitcoin pricing,” and the best (and most honest) answer I can give is, “I don’t know.” I’ve done academic work on the launch of newly listed products in the past and prior assumptions about new markets often are off the mark. I’ve heard arguments for the futures trading at both a premium and a discount to the spot price, personally, I think the best strategy is to see what the market tells us when Bitcoin futures are available for trading.”