U.S. approves bitcoin futures but Brits plan regulatory crackdown

In an unexpected development, the Chicago-based Cboe Futures Exchange (CFE) has announced it will list bitcoin futures contracts for trading on December 10. (NASDAQ:) has said its contracts will begin trading December 18. CBOE said Monday that trading will open at 5 p.m. on Sunday, Dec. 10, with Dec. 11 as the first full day of trading. Its price has jumped more than tenfold this year.

The cryptocurrency was last up 0.4 percent at $11,290.

This also led to the migration of a few miners and investors to other markets like bitcoin cash and ethereum and once again, it looked as though the bitcoin prices would crash a lot more.

The CEO is optimistic about bitcoin futures trading at CME as he stressed that they have worked closely with CFTC and interested parties to come up with a system that will provide investors with transparency, price discovery and risk transfer capabilities. Bitcoin itself is now bought and sold on platforms that are virtually unregulated, which has made some money managers uncomfortable with the market even as prices soar. Duffy sought to assuage those concerns by stressing that the contracts will be subject to a myriad of risk management tools to prevent bitcoin's volatility from having unwanted ripple effects into other markets.

Following the launch of these products, many analysts predict that the Securities and Exchange Commission (SEC) will grant approval to the first exchange-traded fund (ETF) that invests in bitcoin futures contracts, potentially turning bitcoin into a mainstream financial instrument and portfolio asset.

Denis Baranov, a principal consultant at technology consultancy DataArt, says some bitcoin exchanges already offer futures, but the support of a major exchange could boost bitcoin's legitimacy.

The CBOE's announcement brings bitcoin one step closer to institutional traders, who are expected to be the primary customers for such trades.

  • Anthony Vega