In an interview with Reuters, CME Group Chairman Emeritus Leo Melamed predicted that the derivatives exchange’s planned Bitcoin futures launch will help to ‘tame’ Bitcoin, by regulating it. He also suggested that the world’s most famous cryptocurrency is rapidly becoming its own type of asset class, which will enable it to be more properly regulated and traded by large investors.
Melamed noted the importance of getting those investors involved in the exchange’s Bitcoin futures:
“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.”
According to Melamed, CME’s futures will encourage large institutional investors to join the market. Those investors will have the opportunity to short-sell Bitcoins, enabling two-way bets on the cryptocurrency’s performance.
Melamed told Reuters that he started out as a Bitcoin skeptic, but now sees it as at least somewhat similar to the International Monetary Market currency futures that the Chicago Mercantile Exchange launched during his chairmanship in the 1970s.
Even at age 85, he remains open to new technologies:
“My whole life is built around new technology. I never said no to technology. People who say no to technology are soon dead. I’m still that same guy who believes in, at least examining change. That’s what bitcoin represents.”