Over the last few months, we have seen more and more examples of traditional financial institutions trying to pick up an exposure to the dramatic rise in adoption and price of bitcoin and other cryptocurrencies that took place during 2017.
One of the institutions that’s been very vocal and active in its efforts to climb aboard the cryptocurrency train is CME Group Inc., an American financial market company operating an options and futures exchange.
Last month, we got word that CME intends to offer bitcoin futures to its clients before the end of the year, with an expected start date in and around 17 December. On the back of this announcement, markets widely expected CME to be the first institution of its type to offer these sorts of futures as tradable assets and, as a result, the group picked up a bit of a boost to its market capitalization subsequent to the news hitting press.
As it turns out, however, CME looks as though it’s going to be pipped to the post.
This week, CBOE Global Markets (CBOE) announced that, by way of one of its subsidiaries, called CBOE Futures Exchange (CFE), it is going to start offering bitcoin futures to its clients and that it’s going to do so with a start date of December 10.
Here’s what Ed Tilly, Chairman and Chief Executive Officer of CBOE, had to say on the development:
“Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure. We are committed to encouraging fairness and liquidity in the bitcoin market. To promote this, we will initially offer XBT futures trading for free.”
These two entities are probably the two biggest players in the sector and that both will be offering bitcoin futures by the end of 2017 is a real indication of cryptocurrency strength going forward.