Save the date in your trading calendars, Bitcoin futures are coming on the 10th of December at the CBOE.
It is indeed quite a race amongst the exchanges as they try to launch their respective investment products. This will come before the expected launch in December of the CME futures.
Apart from the CBOE and the CME, Nasdaq as well as Cantor Fitzgerald also want a piece of the Bitcoin derivatives pie next year.
Ready, Set, Go!
The CBOE made the announcement via a press release yesterday. The trading will commence at 5pm CT on Sunday, the 10th of December.
As an added incentive, the exchange has stated that there will be no fees on the transactions throughout December (applies to all CFE transactions). The futures will trade under the XBT ticker.
The market has already known that the CBOE would be launching futures but this had not being given a timeline. Now that they have officially released one, there is no doubt traders will be getting excited.
Speaking about the significance of this announcement, CBOE chairman Ed Tilly stated the following.
Given the unprecedented interest in Bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure. We are committed to encouraging fairness and liquidity in the Bitcoin market.
The CBOE has made an agreement with Gemini exchange whereby they have stated that the XBT futures will be settled on a cash basis based on the latest USD auction price at Gemini.
This wil also have a strong impact on the mass adoption of Bitcoin. It will allow numerous asset managers and institutional investors to hedge long positions in the asset.
There are also numerous economists who claim that the benefits of a regulated derivative product could temper the volatility and in return feed more adoption.
This positive feedback loop between decreased volatility and increased adoption is the reason many investors are predicting Bitcoin to hit at least $40k by the end of next year.
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