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CBOE and CME Battle for the Bitcoin Futures Trade Market

Cryptocurrency NewsDec 05, 2017 07:10AM ET
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Investing.com - Chicago’s two largest derivatives exchanges are battling for the US Bitcoin futures trade market. The CME will begin offering Bitcoin futures on December 18th, but the CBOE will start on December 11th, giving them a head start and a week of exclusivity.
What’s the difference between the two exchanges?
First, CME prices will derive from four different Bitcoin exchanges, while CBOE contracts will be based on prices from Gemini, the cryptocurrency exchange run by the Winklevoss twins.
Second, CME plans to limit investors to 1,000 contracts, while the CBOE will set the limit at 5,000.
Both companies say that deals will be settled in cash the day after the contracts expire.
It remains to be seen what the introduction of US futures trading will do to Bitcoin. The speculative buzz is that the influx of institutional investors could spur Bitcoin even higher. But there are also some who are concerned that the ability to short Bitcoin will crash the market.
Brian Quintenz, the CFTC Commissioner, has warned that “it is incumbent on market participants to conduct appropriate due diligence to determine whether these products, which have at times exhibited extreme volatility, are appropriate for them.”

CBOE and CME Battle for the Bitcoin Futures Trade Market
 

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