Bitcoin price (BTC/USD): CME could launch Bitcoin futures within a month

Cornelia Mascio
Novembre 15, 2017

"Conceptually digital currencies are an interesting thing". Following the example of CME Group, major futures market in Argentina, Mercado de Termino de Rosario, disclosed its intention to offer bitcoin futures to investors.

On Monday, CME chairman and CEO Terry Duffy said such a product would likely be ready by the second-week of December.

BTC futures will enabling traders to bet on potential declines in the Bitcoin price (BTC/USD) via a practice known as short selling, or shorting.

CME CEO added during an interview that the platform is not going to control bitcoin's price fluctuations.

However, Duffy downplayed these concerns and assured skeptics that CME will implement restrictions created to contain the inherent volatility of the bitcoin markets. "But what I want to do is give it a place for other people to lay out that risk". At the moment, there isn't a reliable mechanism allowing people to short Bitcoin. Now investors can dabble in cryptocurrency without actually having to own any. So there's only one way it can go.

Last week, bitcoin's value fell from a new all-time record high of $7,800 to a low of $5,500 over the weekend. You either buy it or sell it to somebody else. She has a keen interest in the blockchain space and the use cases the technology is being in and is excited to see what new changes the distributed ledger brings to our day-to-day lives. The digital currency then almost recovered all those losses to hit a high of $6,770.37 Monday, before trading near $6,360. "I think that's going to add a lot more structure to the marketplace", he said. However, the price has recovered then, rising to about $6,400.

Luke Ellis, CEO of United Kingdom -based hedge fund Man Group, spoke to Reuters yesterday at the Reuters Global Investment Outlook Summit in London, and said that if CME launch a bitcoin futures as planned it would add cryptocurrencies to its 'investment universe'. These bumpers might pause bitcoin trading for as long as an hour, and the market will also have intraday limits to prevent the price from fluctuating too wildly within a single day of trading.

In the end, it's great to see more financial institutions getting involved in cryptocurrency, even though a number of them are still proclaiming doom and gloom (we're looking at you, Jamie Dimon!).

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