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Less than three months have passed since the first Bitcoin futures traded on a US stock exchange regulated, but a veteran of the industry says that his clients are already claiming more cryptocurrency derivatives.
Bitcoin announces the start of a new class of derivatives: the director of Wedbush Securities
Bob Fitzsimmons, who has spent decades in commercial wells and now sits as chief executive of Wedbush Securities’ futures division, told MarketWatch that his institutional clients do not just want to negotiate term on Bitcoin. altcoins.
“Customers are wondering” when is Litecoin, when is Ripple? “, Said Fitzsimmons in a telephone interview, adding that the new product class did not feel like a passing phenomenon
“The launch reminds me of the US Treasury market in the 1970s,” he continued. “At the time, the prototypical type was an Ivy League athlete.Today, it’s a quantitative type with its own algorithm that can beat the market.”
As CCN reported, the first US Bitcoin regulated futures contracts were launched in December, first on CBOE and then on CME. The volume remained low compared to global spot markets, but the futures markets were orderly and went through several contract expirations without major incident.
CBOE prepares to deploy more derivatives of cryptocurrency
CBOE executives have not hesitated to launch more cryptocurrency futures, which they see as an opportunity to increase their share of the derivatives market. The foreign exchange operator had said that he wanted to update his trading software before launching other cryptocurrency derivatives, and he announced on Tuesday that he had completed this process.
Meanwhile, other major traders, including the Nasdaq, are planning to register their own Bitcoin futures products. Nasdaq CEO Adena Friedman said in January that the stock market plans are still in the “exploratory phase” and that she wants to structure her Bitcoin futures product so that it will be “more profitable”. an investment “than those currently available on CBOE and CME.
However, some institutional firms have expressed reservations about the development of futures on cryptocurrency, and – responding to these criticisms – the Commodity Futures Trading Commission (CFTC) announced that it would set up a process of enhanced revision for new cryptocurrency derivatives. products going from the front.
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