Related: Plans Revealed for a Blockchain ETF

The exchanges are working on bitcoin futures in response to rising demand to trade cryptocurrency-related products on a platform many traders are comfortable with. Additionally, a futures-backed bitcoin ETF would benefit the Cboe, which lists ETFs on its equities markets.

“The cryptocurrency space is a space that I think we believe in and certainly our competitor across town believes in as well,” Concannon said. “I’m just encouraged by that validation.”

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. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.

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