CME to launch Bitcoin futures contract

World’s largest derivatives exchange, CME Group, is to launch Bitcoin futures by the end of the year
01 November 2017   2617

The world’s largest derivatives exchange,CME Group, unveils its plans to launch Bitcoin futures during the fourth quarter of 2017.

The announcement states that the futures will be cash-settled based on the CME CF Bitcoin Reference Rate, a Bitcoin price index it launched last year in partnership with U.K. firm Crypto Facilities.

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.

Terry Duffy
CME Group chairman and chief executive officer

Assuming regulators grant CME’s application, the exchange will become the second U.S. regulated exchange to offer Bitcoin derivatives to institutional traders. 

Many Wall Street investors have been kept on the sidelines due to the absence of Bitcoin derivatives. The introduction of futures and options contracts is expected to introduce a “wall of liquidity” to the crypto markets.

On top of that, the launch of Bitcoin derivatives means the launch of the first exchange-traded fund (ETF) that tracks the price of bitcoin futures. 

Once a derivative is launched, a bitcoin ETF will follow. That’s the common wisdom.

Don Wilson 
Trading enthusiast

The announcement has already received a great feedback from the community. Charlie Lee, Litecoin creator, called the upcoming launch the "amazing news".

Wilshire Phoenix to Update BTC ETF Application

It's planned that the exchange traded fund will be provided not only by the crypto, but also with treasury bonds
17 October 2019   77

Wilshire Phoenix and NYSE Arca have amended the application for the launch of Bitcoin ETF.

The fund will be provided not only with the first cryptocurrency, but also with treasury bonds.

The custodian of digital assets will be Coinbase Custody. The company will confirm the availability of bitcoins in providing the fund within five working days from the moment of monthly rebalancing.

To determine the value of the bitcoins held, the fund will use the base rate of the Chicago Mercantile Exchange - CME CF Bitcoin Reference Rate (CMR CF BRR).

Wilshire Phoenix recommended that the US Securities and Exchange Commission (SEC) focus on the spot market for bitcoin, which plays a key role in determining its value.

The SEC has already begun to accept public comments on the updated proposal.

Wilshire Phoenix and NYSE Arca filed an initial application in May. At the end of September, the SEC postponed a decision on it.