The CME Group, the operator or the world’s largest derivatives marketplace, yesterday announced plans to launch Bitcoin futures in the fourth quarter of this year, pending regulatory review.
The new contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), which was developed in partnership with London-based digital trading platform Crypto Facilities and launched last November. The BRR serves as a once-a-day reference rate of the US dollar price of Bitcoin, CME said.
"Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract," CME Group’s chairman and chief executive officer Terry Duffy said in a statement. “As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”
In a subsequent interview with Duffy said that he was "confident" the CME's self-certification process at the U.S. Commodity Futures Trading Commission and full application process would go through.
Record-breaking run continues
The news provided additional fuel to the Bitcoin rally, driving the cryptocurrency to new highs. Yesterday the Bitcoin price surpassed $6,400 for the first time and the positive momentum continued in today’s session. The cryptocurrency surged past $6,500 earlier today and is currently approaching the $6,600 level.
As of 10:41 GMT, the Bitcoin price stood at $5,586.51, according to data from cryptocurrency tracker Coinmarketcap. The digital coin has gained 6.6% over the past 24 hours.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.