Bitcoin Futures Could Damp Volatility

Related: Plans Revealed for a Blockchain ETF

Cboe Global markets, an exchange operator competing with CME Group to introduce bitcoin futures, recently announced its intent to offer contracts based on Gemini bitcoin market data by the end of this year or early next year, but the exchange is still waiting on approval from the U.S. Commodity Futures Trading Commission, reports Brian Louis for Bloomberg.

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.

“Other details now available on CME’s website about the bitcoin futures contract include the months for the initial listing: December 2017, January 2018, February 2018 and March 2018. Contracts expire at 4 p.m. London time, typically 11 a.m. ET, on the last Friday of the contract month, according to CNBC.

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