• Skip to main content
  • Skip to primary sidebar

new block crypto

cryptocurrency education

  • start here
  • contact

November 1, 2017 By dpm

The future is coming

A bitcoin futures market may signal incoming institutional investment

The CME Group, a U.S.-based commodities exchange group dating back the mid-1800s, will begin trading bitcoin futures by the end of the year.

The news, which coincides with the ninth anniversary of bitcoin’s original release, is seen as a major step towards institutional investment and general acceptance by traditional investors.

Futures trading allow investors to mitigate risk in times of wild price fluctuations, and to trade with leverage, which can lead to increased trading profits or dramatic losses depending on the position held (long or short) during market movements.

Already enjoying a week of movement up and to the right, the news that the CME group is preparing a futures trading platform sent the price of bitcoin to another all-time high (more than $6,500) at the time of this writing.

An institutionally-back investment product, such as a futures market, is viewed by many as a first step towards creating more accessible and transparent crypto asset investment tools. “The amount of institutional money in bitcoin now is very little because there are very few vehicles,” Spencer Bogart, the head of research at the San Francisco-based Blockchain Capital, a venture capital firm, told Bloomberg. “If there are bitcoin futures, there can be futures-based [exchange-traded funds].”

CME CF Bitcoin Reference Rate (BRR) and CME CF Bitcoin Real Time Index (BRTI)

The bitcoin index

The Bitcoin Realtime Index, another CME Group product that was launched last year in some ways to lay the foundation for traditional trading tools, is a useful tool to keep tabs on the price of bitcoin (which currently can fluctuate between exchanges).

The index pulls data from a number of bitcoin exchanges and aggregates market movements, resulting in a valuation. Like a futures market from an established and regulated commodities exchange, the index is viewed as a necessary piece of the puzzle for other future crypto investment vehicles.

The CME Group’s bitcoin futures trading is still subject to regulatory approval before the official launch.

 

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Related

Filed Under: crypto economics Tagged With: bitcoin

Primary Sidebar

get the newsletter

get 'the hash' delivered straight to your inbox

* indicates required

Categories

  • blockchain
  • books, papers, and resources
  • crypto economics
  • cryptocurrency
  • project updates
  • use cases

Recent Posts

  • Cryptocurrency media and the battle against pump and dump
  • Why cryptocurrencies are here to stay and how crypto markets are like digital farmers’ markets
  • Blockchain: The buzzword
  • Strength, trust, and the ability to keep moving: Three things that will drive crypto to epic values
  • Zero-knowledge proofs and the future of digital privacy
My Tweets

Subscribe

RSS Feed RSS - Posts

© 2021 · new block crypto

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.