Here comes more big moments for bitcoin.
Bitcoin is finally becoming a "professional" investment as the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange Group (CME) launch bitcoin futures contracts on Dec. 10 and Dec. 17, respectively.
The CBOE will be the first to begin trading in bitcoin futures on Sunday evening at 6:00 p.m. EST under the ticker symbol XBT. This is the first major U.S. exchange offering a product pegged to the wildly fluctuating cryptocurrency. In the early going Sunday, bitcoin prices spiked. CBOE's website also went down.
XBT futures are cash-settled contracts based on Gemini's auction price for bitcoin, denominated in U.S. dollars. Gemini is the virtual currency exchange founded by twin brothers Cameron and Tyler Winklevoss, who are known as the iconic Bitcoin Billionaires.
According to Gemini, the XBT futures will cash-settle on the third Wednesday of the month. The final settlement value (XBTS) will reflect the Gemini 4:00 p.m. EST daily bitcoin auction price.
Back in November, CME Group announced its plans to launch bitcoin futures on Dec. 18. The bitcoin futures contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR). The reason the exchange is launching this product is due to increased client interest in the evolving cryptocurrency markets. Crypto Facilities will be working on this product with CME Group, and they will both also publish the CME CF Bitcoin Real Time Index (BRTI) to provide price transparency to the spot bitcoin market.
CME Group chairman and CEO Terry Duffy at the time commented: "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."
Duffy added in an interview with TheStreet's Brian Sozzi, "I don't think I have ever seen so much media attention around something like bitcoin in my 37 years in this industry -- then the price action has been really amazing."
Where Will Bitcoin Prices End 2017?
Bitcoin is currently trading at $15,478, according to CoinDesk. But, bitcoin fans remain bullish believing the crypto will end the year over $20,000.
What do you think?
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