CME Bitcoin Futures Launched

Unlike the 19% surge of CBOE futures a week ago —  the CME futures fell 4% to $18,760 about four hours after opening
18 December 2017   672

The CME Group, the world's largest futures exchange, opened up bitcoin futures for trading at 6 p.m. EST on Sunday under the ticker "BTC". The reference price, from which price limits are set, is $19,600 for the February contract, $19,700 for March and $19,900 for June.

Unlike the 19% surge in CBOE bitcoin futures during their first day of trading a week ago —   the CME futures fell 4% to $18,760 about four hours after opening at $20,650 and rising slightly. Volume on CME was recently at 590 contracts, while on its debut on December 10, the Cboe traded nearly 4,000 contracts during the full session.

A key difference between the Cboe and CME futures is that the Cboe contract represents one bitcoin, while a CME contract represents five bitcoins. The Cboe also settles its futures against a daily price auction from Gemini, while the CME uses its own bitcoin reference rate which tracks several cryptocurrency exchanges.

BTC charts 18 12 17Bitcoin Charts

At the moment of press, these are main market parameters of Bitcoin:

  • Average price: $18 949,70
  • Marketcap: $317 389 226 439 USD
  • 24h volume: $12 980 400 000 USD

Some investors believe the CME bitcoin futures could attract more institutional demand because the final settlement price is culled from multiple exchanges.

Recently, we have reported about the upcoming bitcoin futures, stressing the most important information about the derivatives.

UK launches an inquiry into cryptocurrencies

The inquiry by UK Treasury Select Committee will examine the risks and possible benefits of crypto for investors
22 February 2018   7

European governments are quite cautious about cryptocurrencies and investments into them. And the regulatory base is as of now a lot more sparse, than one in America and Asia. But UK has announced that the Treasury Select Committee is launching an inquiry into cryptocurrencies and the distributed ledger technology that is the base of all crypto networks.

The inquiry will study the risks and opportunities presented by digital currencies for businesses and individual investors. Also, the government wants to see the possible benefits for itself from integrating cryptocurrencies and blockchain into daily operations.

Nicky Morgan, the Chair of the Treasury Select Committee, told the press that public interest in cryptocurrencies is rising, but the investments are unregulated and unprotected by the laws. High risks involved in this market are worrying. She added, that finding the right balance between regulating digital currencies for protection of individual investors and allowing the freedom of innovation is necessary in this case, so the Committee's goal isn't stomping down on overall usage of digital currencies.

This notion is just a next step in widespread action taken by EU governments to regulate cryptocurrencies. Lawmakers all around the Europe are discussing the possible governmental stance on crypto. For example, France and Germany have announced the joint effort which will present a set of regulation in the field during the next G20 summit.