- Bitcoin futures contracts to be offered by CME Group, the largest derivatives company in the world.
- The Bitcoin futures contracts will make it safer for investors to access Bitcoin despite the market’s immense volatility.
Bitcoin futures contracts are getting more attention in 2023, thanks to leading institutions expanding their services to reach an even wider market than it presently serves. The leading global derivatives company CME group is the latest to make a swing into the cryptocurrency futures market.
An announcement from stocktitan says that the CME group is expanding its suite of existing contracts on its platform to accommodate Bitcoin Futures. The big move will fully take place on the 13th of March. Regulatory is a notably important factor that could make or break CME’s plans. Whether or not the plan to make room for BTC futures contracts comes to fruition is, to a large extent, dependent on the decisions of the regulatory bodies in charge. Hence CME’s decision to await regulatory review in the meantime.
Volatile tides have triggered slow movement in the crypto market in the past. Added to that has been the collapse of many leading crypto companies from bankruptcy. CME might be curtailing investors’ fear with this offer. Cryptocurrency investors will be getting a very clear and simplistic path into the market through CME’s Bitcoin futures.
Global Head of Equity and FX Products at CME Group Tim McCourt emphasized this in a recent statement. Tim McCourt explained.
Our new event contracts on Bitcoin futures provide a highly transparent and less complex way for investors to access cryptocurrency markets – with the added benefit of a fully regulated platform.
Bitcoin futures contracts are still useful for investors seeking safer exposure to Bitcoin
Affordability is something to keep in mind when making a juicy offer to investors. CME knows this and meets investors’ needs by providing cost-effectiveness through the Bitcoin futures contract.
Volatility is not as much of a barrier with lower costs. Even if Bitcoin sees instability with prices in the market, investors can trade safely knowing that the cost is on the lower end.
The contracts will typically allow individuals who want to invest funds to participate and access the Bitcoin market while hedging any direct exposure to Bitcoin pricing.
“These contracts, which track the daily price moves of our deeply liquid benchmark Bitcoin futures, offer an innovative, lower-cost way for investors to trade their views on the up or down price moves of bitcoin.” Tim McCourt said.
The first time CME Group launched Bitcoin futures was in 2017. Not long after the launch, CME group moved to include ether futures four years later. Cash-settled micro-Bitcoin futures contracts were launched much later. CME group seems to be hitting its goals because the expansion continued in November 2021 when micro ether futures were added.
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