Announcements by Cboe and CME that they would seek to launch bitcoin futures were seen as a vote of confidence in the digital currency. None of the bad news and adverse comments about bitcoin seemed to matter to the bitcoin bulls and speculators who were intent on pushing the prices higher and during the course of this period, they managed to achieve the coveted target of $10,000 which was a huge psychological mark which numerous investors and traders would have had in their mind some months back.
As per the analysts, the main derivatives of United States regulates that it would permit CME Group Inc and CBOE Global Markets to list bitcoin futures contracts, which had turned sentiment positive after a choppy week.
In a statement published today, the firm said that trading would commence at 5 p.m. CT, with the first full day of trading starting that Monday. The cryptocurrency is now trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).
Bitcoin hit a record above US$11,400 last Wednesday, but then lost 20% of its value in the following 24 hours. "We are committed to encouraging fairness and liquidity in bitcoin markets".
CME and CBOE have also agreed to enter into data-sharing agreements, particularly on the settlement process, so the CFTC can conduct its own surveillance on the new financial contracts. But there are a couple of differences between bitcoin futures trading at the two exchanges. They will also be cash-settled, similar to CME's bitcoin futures.
"If the Commission determines that the margin the DCOs hold against bitcoin futures positions is inadequate, it can take measures to require that the margin levels be increased", CFTC Commissioner Brian Quintez said in a speech last week. In fact, this was the month when the bitcoin market faced one of its biggest challenges as the hard fork that was scheduled to happen during the middle of November, was cancelled and this led to some correction in the industry as the uncertainty that this event led to, brought in some confusion among the traders.