This week, the (Chicago Mercantile Exchange & Chicago Board of Trade) announces its Bitcoin Future specs. Besides, Bitcoin is now set to become a new asset class, says Leo Melamed Chairman Emeritus of CME Group.
While CME group had announced Bitcoin-based futures before the end of the year. Currently, the company has released the BTC futures specs that give details of how the fund will be trading.
The contract will include five bitcoins well-defined by CME CF Bitcoin Reference Rate (BRR). Thus, product codes will be “BTC BTIC: BTB” besides other options while the CME Globex and CME ClearPort trading hours.
CME’s bitcoin futures specs explain,
“Trading in expiring futures terminates at 4:00 p.m. London time on last day of trading. Position limits and spot position limits are set at 1,000 contracts. A position accountability level of 5,000 contracts will be applying to positions in single months outside the spot month and in all months — The reportable level will be 25 contracts”.
Probing the Bitcoin changes signifies
Leo Melamed, Chairman Emeritus of CME Group said, bitcoin is ready to become a “new asset class”. He considers a way of mainstream investors will be indulging in Bitcoin futures. Thus, it can also break down the dispersed currency’s markets.
Related Coverage: Bitcoin has surged – CME announced Bitcoin future trading
“That’s a very important step for bitcoin’s history — We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules”.
Initially, he was not convince Bitcoin had unique qualities. Later on, it reminds him of when he helped launch the International Monetary Market currency futures trading back in 1972.
Melamed says he had not believed in bitcoin to wanting to know more. Notedly,
“My whole life is built around new technology — I never said no to technology — People who say no to technology are no more alive. I’m still that same guy who believes in at least examining change, and that’s what bitcoin represents”.
CME Group- Revenue opportunities
The CME group is preparing to dwell into Bitcoin Futures trading and also the firm is eying the $1.6B in revenue opportunities. Furthermore, rival exchange of CME Group has a partnership with Gemini, a bitcoin trading platform. Thus, it is to capitalize on its Bitcoin options markets.