Bitcoin’s priced surged further on its ninth birthday, as the CME Group announced the launch of Bitcoin futures trading in the fourth quarter of 2017.
Though October 31st saw Bitcoin celebrate its ninth birthday since the emergence of Satoshi Nakamoto’s white paper, the cryptocurrency didn’t just add another year to its portfolio – CME Group announced that it would officially launch Bitcoin futures trading pending regulatory review period.
Presiding over the announcement, Terry Duffy, the CME Group Chairman and Chief Executive Officer, commented that “Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract… As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”
CME Group, in conjunction with Crypto Facilities Limited, launched the BRR (Bitcoin Reference Rate) in 2016, which serves as a once-a-day reference rate that tallies the USD price of Bitcoin. The group further clarified that new contracts would be cash settled and based on the BRR.
Dr. Timo Schlaefer, CEO of Crypto Facilities, offered that “We are excited to work with CME Group on this product and see the BRR used as the settlement mechanism of this important product… The BRR has proven to reliably and transparently reflect global bitcoin-dollar trading and has become the price reference of choice for financial institutions, trading firms and data providers worldwide.”
— Max Keiser (@maxkeiser) October 31, 2017
Bitcoin futures trading would be slated for launch at some point during the fourth quarter of 2017 once all regulatory reviews had concluded.
Bitcoin’s price advanced 2.1% in the wake of the announcement, totalling $6300 USD – cementing a further all-time high that has pushed the cryptocurrency well above the $6000 USD mark.
What are your thoughts? Can we expect to see the launch of Bitcoin futures trading on other platforms in the near future? Be sure to let us know your opinion in the comments below!