Bitcoin futures are one of the bigger markets in the world of finance right now. Various financial institutions look to provide exposure to such services in the future. The Chicago Board Options Exchange is one of the latest ones to do so. Their new Bitcoin derivative contract specifications have been unveiled a few days ago. The product itself is not available yet, but it should come to market in a few weeks.
More and more companies focus on Bitcoin-related investment opportunities these days. That is only normal, as investors want access to profitable vehicles. Right now, cryptocurrencies make all other assets bite the dust in quick succession. Especially Bitcoin is on a lot of people’s radar right now. Gaining exposure to such assets without buying Bitcoin itself is not easy. The Chicago Board Options Exchange acknowledges there is a genuine demand for this vehicle. This is why they will launch their derivative contracts in a few weeks from today.
Chicago Board Options Exchange has Bold Plans
We have seen an increased interest from financial institutions when it comes to Bitcoin futures. A lot of people have different opinions on the value of BTC right now. Being able to go short or long is pretty significant. Considering how the Chicago Board Options Exchange is the biggest options exchange in the US, their support can be invaluable. Right now, the tentative launch date of Bitcoin futures products is somewhere in Q4 of 2017. That means somewhere between now and around six weeks from today.
Surprisingly, this product will use the XBT ticker. It is the same ticker Kraken sues for Bitcoin on their exchange. In a way, XBT should have always been the ticket for Bitcoin h the world of finance. It is not an illogical abbreviation, that much is evident. There will be many different types of contracts provided by the Chicago Board Options Exchange in the future. It is evident they want to get a major market share in quick successions. Only time will tell if that is even possible, though. There is some stiff competition in the world of Bitcoin futures and derivatives right now.
The big question is how these contracts will relate to spot Bitcoin pricing. So far, the Chicago Board Options Exchange has no real answer to this question. We do know there will be extended trading hours and everything will be settled in cash. This is done in accordance with the Gemini auction price of Bitcoin in US Dollars for that particular day. It will be interesting to see how all of this affects the Bitcoin price as a whole. Big things are happening in the world of cryptocurrency, that much is rather evident.
Header image courtesy of Shutterstock
Let’s block ads! (Why?)