The bitcoin price stormed past $11,000 on Friday pursuing the announcements that two U.S. derivatives exchanges have received regulatory approval to list bitcoin futures contracts inside of the near future.
Friday morning, CME and CBOE, both headquartered in Chicago, separately announced they received the pin light out of the Commodity Futures Trading Commission (CFTC) to create and list bitcoin futures products their very own trading platforms. CME’s futures will launch December 18, while CBOE has yet to line a target release date.
The announcements flipped an ignition switch on the markets, and traders initiated a buying frenzy. Shaking off concern rrt had been in the midst of a retrace or for the back side to a bubble cycle, the bitcoin price leaped to your two-day high of $11,161 on bitcoin exchange Bitfinex.
Neither CME nor CBOE’s bitcoin futures will have a direct effects on the asset itself given that the contracts shall be settled with cash rather then bitcoins.
However, most analysts expect that Wall Street firms will feel more at ease wading inside the cryptocurrency ecosystem once exchange-traded products available. Investors also are convinced that Wall Street capital could eventually flow to the underlying markets themselves, raising the money necessary for bitcoin and other cryptocurrencies. Eventually, an exchange can even launch a futures contract this really is settled together with the asset itself, in place of cash.
Barry Silbert, chief executive of the Digital Currency Group, told CNBC’s “Squawk Box” that she anticipates the fact that the launch of bitcoin futures will usher in the first Bitcoin ETF, an investment vehicle vehicle which bitcoin more palatable to retail investors who would like exposure to the fee movement of bitcoin with no risk of holding the asset directly.
“I think it is going to enable finally the approval of bitcoin ETFs, in addition to digital currency ETFs, which is game changing,” he was quoted saying.
At the time of writing, bitcoin was trading during a global average of $11,151, as stated by the BlockExplorer Bitcoin Price Index, giving the world’s most prominent cryptocurrency a $186 billion mark cap.