Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies.

“Experts say the launch of the lending business is part of the broader buildout of the cryptocurrency ecosystem. As the futures market grows, analysts say, the desire to utilize trading strategies that allow you to hedge or find ways to arbitrage digital currencies increases,” according to CNBC.

On Tuesday, it was reported that Cboe Futures Exchange’s software was overhauled, which could clear the way for additional futures products on other digital currencies, but various media outlets could not confirm when bitcoin would get company in the futures market.

For more information on the cryptocurrency, visit our Bitcoin category.

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