First U.S. Bitcoin Futures to Start Trading Next Week -- Update
December 04 2017 - 10:22AM
Dow Jones News
By Alexander Osipovich
The first U.S. bitcoin futures will start trading next week, as
dueling Chicago futures exchanges seek to cash in on surging
investor interest in the digital currency.
Cboe Global Markets Inc.'s new bitcoin futures will go live at 5
p.m. Central time on Dec. 10, with the first full day of trading
set for Dec. 11, the firm said Monday.
That gives Cboe a head start on CME Group Inc., its larger
crosstown rival, which plans to launch its own bitcoin futures on
Dec. 18. The U.S. Commodity Futures Trading Commission on Friday
allowed both exchange operators to go forward with bitcoin
futures.
Cboe is working with online brokerages to allow retail investors
to start trading its bitcoin futures as soon as possible, a
spokeswoman for the company said.
Bitcoin futures would allow traders to bet on rises and falls in
the digital currency, similar to the way oil, corn or gold futures
work. The emergence of bitcoin futures could make it easier for
both Wall Street banks and small investors to trade bitcoin.
A huge price run-up this year has sparked intense investor
interest in bitcoin, which soared to more than $11,800 at one point
on Sunday, up more than 12-fold from the beginning of 2017,
according to CoinDesk.
Still, many financial institutions remain wary of bitcoin due to
its volatility, uncertain regulatory status and lingering
association with illicit activity. Skeptics call it a bubble.
Announcements by Cboe and CME that they would seek to launch
bitcoin futures were seen as a vote of confidence in the digital
currency. Cboe was the first to unveil its plans, in August, while
CME followed suit in October.
The race between the two rivals could determine which exchange
establishes the dominant bitcoin futures contract. CME is the
world's largest exchange company, with a market capitalization of
$51 billion and roots going back to the mid-19th century.
Cboe, worth $14 billion, was founded in 1973 as the Chicago
Board Options Exchange. Its first trading floor was a space that
had once been the smoking lounge for the Chicago Board of Trade --
an exchange that is now part of CME.
A CME spokeswoman declined to comment.
Write to Alexander Osipovich at
alexander.osipovich@dowjones.com
(END) Dow Jones Newswires
December 04, 2017 10:07 ET (15:07 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2024 to Jul 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jul 2023 to Jul 2024