Bitcoin, fondly described as a fraud, will be embraced by not one but two major U.S. exchanges including the venerable Chicago Mercantile Exchange. This comes as a strong validation for what Bitcoin is and also shows how some financial players are ready to embrace a concept whose definition has still not been agreed upon by investors.
The fact that Bitcoin has been accepted on the Wall Street gives traders a push. A lot of people have been eager to bet on this cryptocurrency but have been afraid to do anything about it because Bitcoin’s position in the market was not secure. “Bitcoin, a virtual currency, is a commodity unlike any the commission has dealt with in the past,” CFTC Chairman Chris Giancarlo said in a statement on Friday.
The new products will be subject to U.S. Commodity Futures Trading Commission’s (CFTC) oversight. CME, Cboe and Cantor Fitzgerald LP’s Cantor Exchange, which is creating another kind of bitcoin derivative and binary options, promised to help the agency surveil the underlying bitcoin market. The CME Group, which owns the Chicago Mercantile Exchange, will start trading Bitcoin futures from 18 December this year. The group further added the price of the currency is going to be based on four Exchanges: Bitstamp, GDAX, itBit and Kraken.
Bitcoin was introduced in the wake of the 2008 financial crisis as a way of sidestepping the Government regulations and Central Bank rules. Through the years, Bitcoin’s popularity rose exponentially and it has now reached a point where it is being accepted by the New York Wall Street.
Bitcoin’s value has risen by more than 900% this year and with its sudden peak over the past week where Bitcoin valuation jumped to $ 10,500 from $ 1000 at the beginning of this year, it comes as no surprise that the Wall Street is looking to legitimize this form of currency. Now, all that stays to decide is, the definition of Bitcoin and whether its legality holds or not.
Cboe Global Markets Inc. has not announced a start date yet.“We expect that the futures exchanges, through information sharing agreements, will be monitoring the trading activity on the relevant cash platforms,” CFTC Chairman further added.