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    November 16, 2017

    Rumours swirl that Man Group may soon issue a Bitcoin futures offering

    Man Group offer Bitcoin futures trading

    Luke Ellis, the CEO of UK-based hedge fund Man Group, has indicated that the company could be mulling a decision to launch a Bitcoin futures offering.

    Earlier this year, Bitcoin’s value soared after CME (Chicago Mercantile Exchange) Group announced that it would officially launch Bitcoin futures trading pending a regulatory review period; and now the CEO of Man Group, Luke Ellis, has quipped that that Bitcoin may soon form a part of the company’s ‘investment universe’.

    Speaking to Reuters, Ellis quipped that “Conceptually, digital currencies are an interesting thing… It’s not part of our investment universe today – it could be. If there is a CME future on bitcoin, it would be”.

    Read: New report shows intensification of North Korean assaults on cryptocurrency users, services

    CME Group CEO Terry Duffy recently revealed that the firm would aim to launch Bitcoin futures trading before the close of 2017 pending a regulatory review period – in recent comments, the CEO recently quipped that a cryptocurrency-based futures contract could launch as soon as mid-December this year.

    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 clarified earlier this year that new contracts would be cash settled and based on the BRR.

    Ellis did not provide further insight as to whether Man Group would trade CME’s Bitcoin futures or whether Man Group would pursue direct interaction with cryptocurrency markets.

    At the time of CME Group’s announcement on the 1st of November, Bitcoin’s price advanced 2.1% – providing indication that a positive clarification from Man Group might offer an enticing price bump.

    Read: President Vladimir Putin confirms Russia will regulate ICOs, cryptocurrency mining by July 2018

    What are your thoughts? Be sure to let us know your opinion in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

    EDIT: 13:54 – added clarification on Man Group’s potential strategy.

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    • financialpiggy

      Hmm – I think you have conflated CME’s interest in bitcoin with Man Group’s. CME is launching a bitcoin futures contract as an exchange – enabling market players to participate in price movements, but taking no position. Man Group is considering participating in the bitcoin futures market, taking a position in the futures contract offered by CME through their investment fund(s). By no means would Man Group be the first investment fund to trade bitcoin, nor is it the case the CME is the first to provide a bitcoin exchange (even for bitcoin futures).

      • @financialpiggy:disqus many thanks for your comment, I greatly appreciate the correction! I’ve removed the misrepresentation as above.