CFTC gives green light to Bitcoin futures

The US Commodity Futures Trading Commission CFTC has approved several Bitcoin futures planned by US providers for marketing this Friday, December 1. With the blessing of the derivatives authority, the launch of Bitcoin futures by the CME Group, CBOE and Cantor Fitzgerald is now possible. Their first market entry is planned for December 18. Update: CBOE has now announced that it will list its future contracts on 10 December.

Bitcoin profit establishment enroute?

The project seems to be in dry cloths and is throwing a lot of charcoal at the Bitcoin furnace, which is blazing up again and again these days. With the approval of the Bitcoin profit review, the introduction of the Bitcoin profit futures from the providers CME Group, CBOE and recently Cantor Fitzgerald, which have been planned for months, has been cleared as the most important regulatory hurdle.

After CME CEO Terry Duffy announced last month that the introduction is planned for mid-December, the approval of the authority confirms this schedule. According to the suppliers, CME’s US customers will now be able to take advantage of future business opportunities from 18 December. CBOE is listing its futures a week earlier. Cantor Fitzgerald, on the other hand, is still waiting for concrete details and plans to launch its binary options in the first half of next year.

Specific details of the CME Group, CBOE and Cantor Fitzgerald offers available this month can be found on the providers‘ websites.

Attention: No comprehensive Bitcoin profit

As stated in the accompanying press release of the authority, common standards had previously been worked out in intensive cooperation with the Bitcoin profit providers for the introduction in order to explore the new territory around crypto derivatives like this

However, a comprehensive regulation of the Bitcoin derivatives market on the US stock exchanges does not represent the approval of the CFTC. This was underlined by the Commissioner of the Authority, J. Christopher Giancarlo. On the contrary, he emphasized that his agency had limited authority and could not provide holistic supervision of the complex crypto market.

„Market participants should be aware that the relatively young cash markets and transactions behind Bitcoin remain largely unregulated markets over which the CFTC has little legal authority. There are [still] concerns about price volatility and the trading practices of participants within these markets,“ said Giancarloin, says Giancarlo.

Despite all warnings, Terry Duffy, Chairman and CEO of the Chicago futures and options exchange CME Group, is confident in an interview with Coindesk that he has put the necessary control mechanisms in place.

„We are pleased to bring Bitcoin futures to the market after working closely with the CFTC and other market participants to design a regulated offering […] with opportunities for transparency, price development and risk transfer.

With the approval of the CFTC, Bitcoin is taking an important step towards established financial markets. The fact that this trend could continue in the near future is confirmed, among other things, by the announcement of the New York Nasdaq stock exchange. As BTC-ECHO reports, the largest electronic exchange provider also announced this week its intention to launch crypto derivatives.

In addition, a chain reaction is likely to set in motion at the end of the year as the westerly winds from Chicago and New York carry the business model into European latitudes. Luke Ellis, Managing Director of the British hedge fund Man Group, had announced that he would also venture into new business territory with crypto derivatives.