CBOE and CME are gamechanger for Bitcoin traders

The major Futures Exchanges, like CME, CBOE, ICE & Nasdaq would be the winners in the Crypto derivatives battle, so I was pleased to see CME have announced that they will list Bitcoin futures on December 17, 2017 and CBOE listing them since December 10, 2017.

Nasdaq has announced the intention to list as well and the other major exchanges will almost certainly follow-suit. The CFTC made a statement on December 1, 2017 allowing CME, CBOE and Cantor to list self-certified Bitcoin Futures contracts. This is a massive game changer!

One of the problems with Bitcoin and its crypto friends is the massive volatility. This is partly due to the lack of liquidity causing ‘thin’ markets which can be moved relatively easily by large trades.
Very few institutions have engaged with Bitcoin because of the scary monsters that live there. Unregulated and sometimes unprofessional crypto exchanges do not bring confidence to the market but Regulated Investment Exchanges (RIEs) like CBOE and CME exude confidence.

The futures markets feed liquidity back into the physical markets and as liquidity grows, volatility stabilises. Once the Futures markets are well-established then the CFD markets can flourish as they can be beautifully priced from the Futures contracts.

Source: Finance Magnates

Trader Bozhidar Arabadzhiev

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