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When the Commodity Futures and Trading Commission announced that two major stock exchanges could start offering future bitcoins to investors, the people of the crypto community announced it as a triumphant day.
This decision was announced on December 1, 2017 and the price of Bitcoin has increased by 13% on this news. It has been seen as a significant move in the most common funding for cryptocurrencies. For the first time, they have been significantly recognized by a leading government agency.
CBOE Global Markets Inc. and CME Group have both been given the go-ahead to start offering these futures, allowing institutional investors to get involved in Bitcoin in a much easier and more meaningful way.
While the performance of these futures has been mixed because of bitcoin price volatility since the beginning of the year, it now seems that other cryptocurrencies will soon have their own contracts to term available for trading.
CBOE Global Markets Inc. made a statement Tuesday informing the public that they have completed a technology upgrade for their futures exchange over the past weekend.
On Jan. 17, the company’s president, Chris Concannon, admitted that it was advisable to have derivatives for various digital currencies, but the exchange of his company would not be in able to launch these contracts as long as their system software is not updated. . Now that this is over, nothing is against a variety of instruments across the spectrum of cryptocurrency.
First cryptocurrences online?
Although Concannon did not go into detail about the crypto-currencies that CBOE would initially focus on, there has been a lot of speculation about crypto-community tricks.
Bitcoin is currently on top of the crypto mountain with $ 178 billion in circulation. There are four additional digital currencies that exceed a market capitalization of $ 10 billion and these are Ethereum, Ripple, Bitcoin Cash and Litecoin.
It would be logical for one or more of these top market capitalization tokens to be top of the priority list for a CBOE Derivative Launch.
Significant work was done on the CBOE Futures Exchange, including a reduction in latency above 80%. Transaction speed is extremely important for traders as a delay of a few seconds can have dramatic effects on the outcome of a trade.
They also made improvements to the order-by-order data flow, bandwidth thresholds, free-trade prevention, risk controls, and complex propagation order management.
People are wondering if CBOE ‘s competitor with future bitcoin, CME Group will follow suit and look to launch futures for other cryptocurrencies. The CME group appears to be taking a more cautious approach to expansion and will most likely monitor what is happening with CBOE ‘s new offerings to see their performance before making a firm decision.
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