CME Announces Plans for Bitcoin Futures, Bitcoin Price Soars




CME Group recently announced plans to begin offering Bitcoin futures later this year. That plan is subject to regulatory review, but approval could allow the exchange to introduce those futures contracts sometime in the fourth quarter of 2017. CME Group is the largest futures exchange in the world, and its embrace of the world’s most well-known digital currency is being viewed by many observers as a sign that Bitcoin is quickly becoming an “established asset class.”

According to a report from CNBC,

“The bitcoin futures contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), which CME launched in November 2016 with London-based digital trading platform Crypto Facilities. The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.”

Exchange CEO Terry Duffy told CNBC that he believes that the U.S. Commodity Futures Trading Commission (CFTC) will approve CME’s application. Duffy added, “We've been working with the regulator. They understand our application. And they understand our model very, very well."

Meanwhile, Bitcoin’s price has continued to soar this week - topping $6,400 on Tuesday, and rising above $6,900 on Wednesday before retreating to around $6,850.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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