As early as the end of October, the news that the stock exchange operator CME wants to create a regulated trading center for cryptocurrencies caused the Bitcoin price to rise significantly. The interest of customers has increased significantly, according to the world’s largest stock exchange operator for futures. At this point, the company was still talking about a launch at the end of the year.
The fundamental novelty of a future on digital currencies from the CME would be that it would trade directly through an official, regulated, stock exchange. Although the trade of digital tokens is already possible in a variety of ways. For example, brokers offer bitcoin CFDs and digital currencies can also be traded on special Bitcoin marketplaces. There is no regulation there.
CME CEO continues to fuel hopes
No wonder, then, that CME CEO Terry Duffy is working hard for the new futures contracts. Already in the company announcement, the CME was optimistic that they will receive the necessary regulatory approvals for a Bitcoin future. Realistically, that could be the fate. Just last week showed how volatile the digital currency is. For this reason, the launch of the Winkelvoss ETF failed. Here, the US Securities and Exchange Commission refused its approval due to the high volatility.
If the SEC approves the plans of the CME, with the help of some of the largest Bitcoin exchanges, the exchange wants to calculate the price as “CME CF Bitcoin Reference Rate (BRR)”. In the end, with the Bitcoin future, investors would have the opportunity to bet on rising or falling prices, as in a CFD. However, the CME has set a limit of 20 percent above or below the current market price level.
Above all, Duffy stresses to CNBC one thing: “I think in the second week of December they will see our contract for listing”. So the Bitcoin future could come even faster than previously thought.