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Cboe pulls the plug on bitcoin futures trading — for now
Unregulated bitcoin futures exchanges have already been in existence for some time. But they have failed to attract institutional investors, who have mostly stayed away from the cryptocurrency. It will enable institutional investors, who have mostly stayed away from the cryptocurrency, to take positions betting for or hedging against its price movements. While large trading firms and bitcoin miners are expected to be the major players in bitcoin futures, retail investors can also profit off its volatility by using futures.
Both contracts are cash-settled meaning they are settled in U. Here are the main differences between bitcoin futures contracts at both exchanges:. On the other hand, CBOE will price contracts with a single auction at 4 pm on the final settlement date.
It will use bitcoin prices from the Gemini exchange, owned by the Winklevoss twins, to calculate contract value. Bitcoin prices, so far, have varied between different exchanges due to differences in trading volume and liquidity. Cryptocurrency News. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.
Cboe Might Want to Reconsider its Exit from Bitcoin Futures
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Your Practice. Popular Courses. CME's version has historically seen more trading volume. CME bitcoin futures' day average volume is more than four times larger than Cboe's. When they were introduced, futures gave investors a way to buy and sell cryptocurrency in a regulated marketplace. Those in favor of it said it would be a way to usher institutional investors into the bitcoin marketplace.
There has been little evidence of that happening in the form of crypto derivatives. Skip Navigation. Markets Pre-Markets U. Key Points. The first U. It's still "assessing" its approach for how it plans to continue.