When it comes to digital currencies, Bitcoin is the undisputed leader. The original cryptocurrency has been around for more than a decade and has spawned an entire industry around it. One of the latest developments in the Bitcoin space is the launch of Bitcoin futures contracts. Futures contracts are agreements to buy or sell an asset at a specified price at a future date.
They are commonly used in commodities markets, but are now also being offered for Bitcoin. The launch of Bitcoin futures contracts on major exchanges has been seen as a big step forward for the digital currency.
Bitcoin futures contracts are currently being offered by two major exchanges, CME Group and CBOE Global Markets. Both exchanges launched their contracts on December 18, 2017. The CME Group contract is priced in U.S.
dollars and is settled in cash. The CBOE Global Markets contract is priced in bitcoins and is settled in bitcoins.
The launch of Bitcoin futures contracts has been seen as a big step forward for the digital currency. It shows that there is growing interest from institutional investors and that there is a demand for products that will allow them to trade Bitcoin in a regulated environment.
The launch of these contracts also provides more liquidity for Bitcoin and could help to reduce volatility.