CME to launch bitcoin futures trading on December 18

A woman walks past an electronic board showing the graphs of the recent movements of Japan's Nikkei average in Tokyo

The CME Group, which owns the Chicago Mercantile Exchange, will start trading bitcoin futures from December 18, the company said.

Once liquidity builds in the Cboe bitcoin futures contract and the exchanges are able to show how their oversight of the underlying market works, Cboe plans to reapply with the U.S. Securities and Exchange Commission to launch a bitcoin ETF, Chief Executive Officer Ed Tilly said in an interview on Friday. None of the bad news and adverse comments about bitcoin seemed to matter to the bitcoin bulls and speculators who were intent on pushing the prices higher and during the course of this period, they managed to achieve the coveted target of $10,000 which was a huge psychological mark which numerous investors and traders would have had in their mind some months back.

Cboe's bitcoin futures contract will trade under the ticker symbol "XBT" and will be cash-settled based on the auction price from cryptocurrency exchange Gemini, Cboe said on Monday.

CME is not the only US exchange that is going to add bitcoin futures to their product offerings. The cryptocurrency is now trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).

This also led to the migration of a few miners and investors to other markets like bitcoin cash and ethereum and once again, it looked as though the bitcoin prices would crash a lot more.

The introduction of futures from both Cboe and CME may entice more professional traders and investors to join the cryptocurrency market by shifting transactions onto regulated exchanges. Duffy sought to assuage those concerns by stressing that the contracts will be subject to a myriad of risk management tools to prevent bitcoin's volatility from having unwanted ripple effects into other markets. But there are a couple of differences between bitcoin futures trading at the two exchanges.

Bitcoin has been a hot commodity for investors.

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