Soaring interest coming from institutional along with retail investors has prompted global exchanges, such as the Cboe, to launch futures contracts. Meantime, CME Group can be poised to a launch bitcoin futures contract on Sunday along using a German stock exchange operator can be reportedly considering whether to follow suit.
The launch of bitcoin futures contracts represents a significant step from the legitimization of cryptocurrencies, according to some market participants. Futures are derivatives, or financial instruments, of which obligate a trader to either buy or sell an asset at a specified time along with at a specified cost.
Bitcoin bulls have frequently referenced the cryptocurrency’s scarcity value as a primary reason for its staying power. Somewhat like gold, bitcoin supply grows at glacial along with ever-decreasing fixed rates with only 21 million bitcoins set to be in existence.
yet while the trading of bitcoin futures on two of the globe’s largest exchanges can be likely to provide a layer of official oversight of which had not previously existed, several leading voices have expressed skepticism.
JPMorgan Chase CEO Jamie Dimon called bitcoin a “fraud” of which might eventually blow up, while billionaire investor Warren Buffett urged traders to “stay away coming from the idea,” calling the rally a “mirage.”