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CME Becomes Bitcoin Futures Leader as ETF Decision Looms

Tue, 08/21/2018 - 11:21
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Darryn Pollock
CME’s battle with CBOE to control the Bitcoin futures market has seen the former take a substantial lead in the prelude to potential a potential Bitcoin ETF
CME Becomes Bitcoin Futures Leader as ETF Decision Looms
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Ever since institutional investment houses got wind of the idea of a Bitcoin future, there has been competition, especially in Chicago with CME and CBOE. Both of these companies opened up Bitcoin futures within a few days of each other back in December last year and have been duking it out for supremacy ever since.

However, since about February, CME has started breaking away from CBOE in terms of its offering. And, since July, they have been growing exponentially while CBOE remains steady far below and Coinbase’s Spot Bitcoin Future lulls too.

Pulling ahead

CME is the world’s largest exchange group and is starting to make great strides in the nascent bitcoin derivatives market. Despite a drop in the price of Bitcoin, CME has seen its volumes for Bitcoin futures doubling in July and have extended their growth into August.

CME Becomes Bitcoin Futures Leader as ETF Decision Looms

Meanwhile, its biggest competition, CBOE, has not seen nearly the same growth over the same period, but this is hardly surprising as it is rare for similar futures contracts to flourish in more than one venue.

An important victory

This sudden spike in interest for Bitcoin futures comes at a critical time for CME as they can establish themselves as the leaders in Bitcoin derivatives at a time where a Bitcoin ETF could be entering the market, pending a SEC decision.

However, although both CME and CBOE have a finger in the potential ETF pie, it is CBOE with their partnership with Van Eck and the SolidX ETF that looks to hold the most promise.

If CBOE was to earn the partial rights to have a Bitcoin ETF, it would no doubt do huge things for the growth of this derivative market within the trading house, and could help them again take top spot as the institutionalized investors stop for Bitcoin options.

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.