When CME bitcoin futures expire, the holder of the contract is obliged to deliver the underlying asset, cash-settled in US dollars, to the exchange on the specified delivery date. The settlement price is calculated using a price index, with the final settlement price being published by 4:00 p.m.
London time on the last trading day. If the delivery date falls on a weekend or holiday, then delivery and settlement take place on the next business day.
NOTE: WARNING: When CME Bitcoin Futures Expire, the contract holder is obligated to deliver the bitcoin on or before the expiration date. If the holder fails to deliver the bitcoin, they may be subject to margin calls and other penalties. Additionally, any gains or losses on the expired contract must be reported for tax purposes. Investors should understand all of their obligations before entering into a CME Bitcoin Futures contract.
When futures contracts expire, there is often a scramble to buy or sell the underlying asset in order to avoid having to make or take delivery. This can result in volatile prices as participants rush to square their positions.
For bitcoin futures, this effect may be amplified by the fact that there is no centralized market for bitcoin and so prices can vary widely between exchanges.
The expiration of CME bitcoin futures may also have an impact on the price of bitcoin itself as holders of expiring contracts may attempt to buy or sell bitcoin in order to avoid having to make or take delivery. This could lead to volatility in the spot market as well as the futures market.
6 Related Question Answers Found
When it comes to Bitcoin, there is a lot of speculation about what will happen to the popular cryptocurrency if the US Dollar collapses. While no one can say for sure what will happen, there are some possible scenarios that could play out. If the US Dollar were to collapse, it would likely have a domino effect on other fiat currencies around the world.
Bitcoin halving is the process whereby the block reward for mining new bitcoins is cut in half. This event occurs every 210,000 blocks, or roughly every four years, and serves as an important check on inflation within the Bitcoin ecosystem. By cutting the block reward in half, miners are incentivized to sell more of their bitcoins in order to recoup lost profits, which reduces the circulating supply and puts upward pressure on prices.
Bitcoin futures contracts were first offered on the Chicago Mercantile Exchange (CME) in December 2017. CME Bitcoin futures are cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.
When it comes to Bitcoin, there are a lot of things that can happen. For example, what happens to Bitcoin if the dollar crashes? In the past, we’ve seen that when the stock market crashes, Bitcoin usually follows suit.
When Bitcoin is lost, the associated cryptocurrency is gone forever. This is because there is no central bank or other authority that can issue new Bitcoin. The only way to get Bitcoin is through mining or by purchasing it on an exchange.
On December 18, 2017, the Chicago Mercantile Exchange (CME) launched bitcoin futures. This was a watershed moment for cryptocurrency as it was the first time that a major financial institution offered investors a regulated way to bet on the future price of bitcoin. The launch of bitcoin futures by the CME was seen as a major step forward in the mainstream adoption of cryptocurrency.
