Cboe to Launch Bitcoin Futures Trading on Sunday

Cboe to Launch Bitcoin Futures Trading on Sunday

Cboe to Launch Bitcoin Futures Trading on Sunday

"The price rises are triggered by continued media interest driven by the expectation of futures trading on CME", Charles Hayter, founder of data analysis website Cryptocompare, said.

The move also comes amid a time of climbing prices of bitcoin. But the cryptocurrency could be poised to become a friend to institutional investors, with one of the largest derivatives exchanges in the world, CME Group, planning to launch bitcoin futures before the end of the year.

Chicago-based CBOE said trading will start on its CBOE Futures Exchange at 5 p.m Central Time on Sunday, the beginning of global trading hours, with December 11 being the first full day.

The bitcoin mania doesn't seem to be losing steam, despite repeated regulatory blows - especially in China - and growing more than tenfold in value from the beginning of this year. "We are committed to encouraging fairness and liquidity in the bitcoin market", said Ed Tilly, chairman and CEO of Cboe Global Markets, in a statement.

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The cryptocurrency was last up 0.4 percent at $11,290. But there are a couple of differences between bitcoin futures trading at the two exchanges.

Nasdaq Inc also plans to list a futures contract based on bitcoin in 2018, Reuters reported last week. At the time in August, the CBOE was working with New York-based bitcoin exchange Gemini, which is run by investors Cameron and Tyler Winklevoss, ahead of the launch.

The Commodity Futures Trading Commission said it had discussions with the exchanges to protect consumers from extreme price swings.

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. CBOE has already expressed its desire to list these products, and - just this week - The Wall Street Journal reported Nasdaq Inc. hopes to list bitcoin futures on one of its USA exchanges during the first half of 2018.

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