CME Group has listed a bitcoin futures contract, to start on 18 December.
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Bitcoin has gained more mainstream attention lately as its price has soared on the private exchanges. One bitcoin was worth just a fraction of a penny when it started trading in 2010, and by the start of this year was worth $1,000.
Bitcoin's price levels have mostly displayed incremental gains within the $11,000 price range. "We are committed to encouraging fairness and liquidity in the bitcoin market", said Ed Tilly, chairman and CEO of Cboe Global Markets, in a statement.
On the other hand, CME plans to use the services of four bitcoin exchanges - Bitstamp, GDAX, itBit and Kraken - to set its Bitcoin Reference Rate (BRR). At 19:54 UTC on Monday, bitcoin was trading at $11,237.19, unchanged in the last 24 hours. CBOE has already expressed its desire to list these products, and - just this week - The Wall Street Journal reported Nasdaq Inc. hopes to list bitcoin futures on one of its US exchanges during the first half of 2018. To ensure minimal impact on markets due to bitcoin's price swings, traders will have to pay 33 percent of their trade's price upfront as compared to the 35 percent for CME bitcoin futures trades.
Last week, a JPMorgan global markets strategist forecast that the introduction of bitcoin futures would legitimize cryptocurrency in the eyes of both institutional and retail investors, transforming the cryptocurrencies into "an emerging asset class".