Bitcoin Futures

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About Bitcoin Futures

The first Bitcoin futures were launched by CBOE on December 10, 2017. This is a very big milestone for Bitcoin and will bring greater transparency, liquidity and perhaps even stability to the market. CME Group launched their futures contracts on December 18, 2017.

The official statement from CME is as follows. "Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a Bitcoin futures contract." Terry Duffy the CME Group Chairman also added "As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities."

What are futures contracts?

Futures are financial contracts that obligate the buyer to purchase an asset (or the seller to sell an asset) such as a physical commodity or a financial instrument at a future date and price. Futures contracts specify the quantity and quality of the underlying asset in order to facilitate trading on a futures exchange. Some futures contracts may call for the physical delivery of the asset, while others do not and are settled in cash.