According to the official release, CME Group has self-certified the initial listing of its Bitcoin futures contract, which will be listed on and subject to the rules of CME.
The CBOE Futures Exchange will start trading bitcoin futures Sunday, making it the first traditional exchange to allow investors to bet on the future price of the digital currency. Not only will it provide professional traders with the ability to short bitcoin for the first time, but it will also open the door to the creation of a Bitcoin ETF and likely entice Wall Street firms to step off the sidelines and engage directly with bitcoin and other digital assets. It was trading Friday at around $10,500, after being worth roughly $1,000 at the beginning of the year.
Since November 2016, CME Group and Crypto Facilities Ltd. have calculated and published the BRR, which aggregates the trade flow of major bitcoin spot exchanges during a calculation window into the U.S. Dollar price of one bitcoin as of 4:00 p.m. London time.
Bitcoin has gained more mainstream attention lately as its price has soared on the private exchanges. It is now worth more than $11,000.
The bitcoin futures, which will trade under the ticker "XBT", will be cash-settled contracts based on cryptocurrency exchange Gemini's auction price, Cboe said on Monday. "We are committed to encouraging fairness and liquidity in bitcoin markets".
On the USA -based Bitfinex exchange, fell to $11,131, down $31, or 0.28% after hitting an all-time high of $11,843 earlier in the session.
On the other hand, CME plans to use the services of four bitcoin exchanges - Bitstamp, GDAX, itBit and Kraken - to set its Bitcoin Reference Rate (BRR). The first bitcoin futures contracts on a regulated US exchange are set to launch on Sunday.
Bitcoin has been a hot commodity for investors.