The world’s largest derivatives exchange, CME Group, has announced that effective March 13, Bitcoin futures will be added to its lineup of event contracts.
These new contracts, which are subject to regulatory clearance, are intended to provide investors with a simpler and more transparent means of accessing the cryptocurrency markets.
The new contracts will provide investors with a novel option to trade on Bitcoin’s volatility by following the daily price changes of the benchmark Bitcoin futures. They allow participants to know their maximum profit or loss when entering a transaction and are worth up to $20 per contract.
“Our new event contracts on Bitcoin futures provide a highly transparent and fully regulated platform for investors,” said Tim McCourt, global head of equity and FX products at CME Group.
In December 2017, at the end of the previous bull market, the biggest futures exchange in the world introduced its Bitcoin futures contract.
Nevertheless, the introduction of Bitcoin futures by well-known U.S. exchanges has been viewed as a step toward the recognition of cryptocurrencies as legitimate asset classes.
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