(Reuters) – Cboe General Markets Inc will launch its bitcoin futures contract on Dec. Ten, just overheen a week ahead of rival CME Group Inc, spil the exchange technicus takes the next step toward launching an exchange-traded fund based on the digital currency.
Bitcoin&rsquo,s price has soared tenfold this year, prompting many market participants to warn of a bubble spil it topped $11,000 for the very first time last week.
Bitcoin futures and other derivatives would make it lighter for more investors and speculators to trade the fresh asset class.
Cboe’s bitcoin futures contract will trade under the ticker symbol ‘XBT’ and will be cash-settled based on the auction price from cryptocurrency exchange Gemini, Cboe said on Monday. (reut.rs/2BvXvwu)
CME&rsquo,s bitcoin futures contract launches Dec. Legitimate, available for trading on the CME Globex electronic trading podium, the world&rsquo,s largest derivatives exchange said on Friday.
Cboe and CME were given approval from the Commodity Futures Trading Commission to list bitcoin futures on Friday after the rival bourses were able to voorstelling that their proposals met the necessary regulatory requirements.
The exchanges also had to agree to work together to instructor for manipulation, flash rallies, trading outages and other structural problems te the largely unregulated bitcoin specie market.
Merienda liquidity builds ter the Cboe bitcoin futures contract and the exchanges are able to demonstrate how their oversight of the underlying market works, Cboe plans to reapply with the U.S. Securities and Exchange Commission to launch a bitcoin ETF, Chief Executive Officer Ed Tilly said te an vraaggesprek on Friday.
So far, the SEC has not permitted bitcoin-based ETFs on the CBOE or elsewhere, partly because of concerns around the unregulated facet of bitcoin.
To help guard against excessive volatility, both Cboe and CME project to have intraday price thresholds and initial margin rates of 30 and 35 procent respectively.
Nasdaq Inc also plans to list a futures contract based on bitcoin te 2018, Reuters reported last week.
The cryptocurrency wasgoed last up 0.Four procent at $11,290.
Reporting by John McCrank te Fresh York and Aparajita Saxena te Bengaluru, Editing by Shounak Dasgupta and Andrew Hay