CBOE to launch bitcoin futures trading Sunday

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Cboe Global Markets Inc will launch trading in its bitcoin futures contract on december 10, just over a week ahead of rival CME Group Inc.

Official trading and full day trading of the futures will begin on December 11, and trading will be free through December.

CME Group said trading would be available on its CME Globex electronic trading platform from 18 December.

"We are pleased to bring Bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities", said Terry Duffy, CME Group (NASDAQ:) Chairman and Chief Executive Officer on Friday. We are committed to encouraging fairness and liquidity in the bitcoin market.

Cboe announces bitcoin futures to start trading Sunday

The move will subject some of the bitcoin market to federal regulation for the first time. At 19:54 UTC on Monday, bitcoin was trading at $11,237.19, unchanged in the last 24 hours. While CME's announcement sent bitcoin's price hurtling past the $11,000 mark for the second time last week, CBOE's release hasn't had the same effect.

Although the futures have yet to begin trading, Cboe president Chris Concannon has already hinted that the exchange may soon launch futures contracts for ether and bitcoin cash, according to a Business Insider report. But there are a couple of differences between bitcoin futures trading at the two exchanges. Market data from bitcoin exchanges Bitstamp, GDAX, itBit, and Kraken will be used to calculate CME's once-a-day Bitcoin Reference Rate (BBR).

Bitcoin has been a hot commodity for investors. To ensure minimal impact on markets due to bitcoin's price swings, traders will have to pay 33 percent of their trade's price upfront as compared to the 35 percent for CME bitcoin futures trades.

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