CME Head: BTC futures will decrease the coin's volatility

Terry Duffy, Head of CME Group, believes that he launch of bitcoin futures on the traditional financial will help reduce the volatility of the BTC
17 November 2017   1238

According to the head of CME Group, Terry Duffy, the launch of bitcoin futures on the traditional financial will help reduce the volatility of the first crypto currency. This is reported by the Business Insider.

Listen, it’s no mystery, this is a different product. We want to get out something that’s safe. 
 

Terry Duffy

Head, CME Group

According to mr. Duffy, BTC volatility will be reduced due to these factors:

  1. Bitcoin futures will not be able to trade 20% below or above the price of settlement the previous day.
  2. Bitcoin futures traders will have to put up approximately 30% collateral in the event they lose the bet.

Also, he belives that Bitcoin futures most likely, will attract to the market a younger generation of traders.

There’s a lot of young people that will like this type of marketplace, and they don’t even know what futures are today.
 

Terry Duffy

Head, CME Group

 

Bakkt to Unveil Bitcoin Futures Test Date

Along with date announcement, COO Bakkt believes the platform will attract institutional investors and set new standards for the cryptocurrency market
14 June 2019   203

The Bakkt cryptocurrency platform has named the exact start date for testing Bitcoin futures. The first users will be allowed to test the tool on July 22.

According to Bakkt's Operations Director, Adam White, the platform will attract institutional investors and set new standards for the cryptocurrency market.

White pointed out that the wider distribution of cryptocurrencies, in particular, is hampered by unreliable pricing mechanisms and the likelihood of instantly falling rates.

Along with these problem-solving solutions that are new to digital asset markets, Bakkt also brings all the other features that institutions would expect in a versatile and broadly accessible market, including: block trades; a fee holiday through the end of the year to encourage trading; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.
 

Adam White

COO, Bakkt

At Bakkt, two futures contracts will be presented - with daily and monthly settlements. Risk management and the securing mechanism for these contracts will meet the standards of the traditional derivatives market.