Chicago-based Cboe Futures Exchange (CFE) will list Bitcoin futures contracts for trading this Sunday December 10 for trading starting 5 p.m. CT under the ticker symbol “XBT.”
The company will also waive trading fees for the products for December.
It said that developing a regulated derivatives market was the next logical. Besides crucial step towards advancing the broader digital asset market. However, the announcement was a significant milestone given they had been building infrastructure to grow digital markets for years.
CBOE said it was vital to provide clients with trading tools to hedge their exposure.
The contracts will be cash-settled and the price will be rely on the daily auction price from Gemini. It is a New York crypto exchange.
Ed Tilly, chairman and CEO of Cboe Global Markets, said in a statement,
“We are commit to encouraging fairness and liquidity in the bitcoin market”.
The news come after CME announcement on Friday that they will list Bitcoin futures on December 18 and the announcement by Securities and Exchange Commission (SEC) that it would grant permission to three exchanges to trade the futures contracts. They will be the first U.S. traditional exchanges to support a cryptocurrency-derived futures product.
Business Insider report quoted CBOE chairman as saying that they could also launch Ether futures contracts.
The futures contracts in cryptocurrency scenes could legitimize crypto in the eyes of institutional and retail investors. Since that could make them an emerging asset class. According to a forecast by JPMorgan global markets strategist Nikolaos Panigirtzoglou in a report last Friday.
“The prospective launch of bitcoin futures contracts by established exchanges in particular has the potential to add legitimacy and thus increase the appeal of the cryptocurrency market to both retail and institutional investors.”
In addition to CME and CBOE, Nasdaq also hopes to launch Bitcoin futures contracts in the second quarter of 2018, basing its price on four Bitcoin price sources from all around the world.
BnkToTheFuture online investment platform, will also launch a blockchain ledger-based platform by end of this year to help investors trade equities in cryptocurrencies. It will allow investors to trade tokens through a technology built on top of Ethereum blockchain.