Thus far, no exchange traded products related to digital currencies have been approved by U.S. regulators. 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.
Bitcoin futures are currently live on Cboe and CME with Nasdaq still considering a launch of similar products later this year.
The Senate Banking Committee is expected to hold a hearing on bitcoin in February featuring leaders from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
According to Bloomberg: “I saw a message that said this is not a mature asset class in the vein of the U.S. dollar or gold,” the president of NYSE Group Inc. said in a Thursday interview with Bloomberg Television at the World Economic Forum’s annual meeting in Davos, Switzerland. “If I had to guess, it’s a while. I don’t have timing, but it is not imminent.”
For more information on the cryptocurrency market, visit our Bitcoin category.