In a move that looks set to pip the CME at the Bitcoin Futures trading post, Cboe Global Markets has announced plans to offer trading in bitcoin futures beginning on Sunday, December 10th. Cboe’s bitcoin futures will trade on the CBOE Futures Exchange under the ticker symbol XBT and there will be no fees for trades during December the company says.
“Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure,” says Cboe chairman Ed Tilly, “We are committed to encouraging fairness and liquidity in the bitcoin market. The announcement follows the news last week from the CME Group that it had self-certified the initial listing of its Bitcoin futures contract and would launch trading on l December 18.
“Developing a regulated derivatives market is the next logical and crucial step towards advancing the broader digital asset market."
— Tyler Winklevoss, CEO, Gemini Trust Company
XBTSM futures will be cash-settled contracts based on Gemini Trust Company’s auction price for bitcoin, denominated in U.S. dollars. Gemini is a digital asset exchange and custodian company run by Tyler Winklevoss that allows customers to buy, sell, and store digital assets such as bitcoin.“Developing a regulated derivatives market is the next logical and crucial step towards advancing the broader digital asset market,” says Winklevoss. “We have been working for years to build infrastructure to grow the digital asset market and today’s news marks a significant milestone.”
Over the last five years, the total value of all bitcoin’s market cap has grown from less than $1 billion to over $183 billion with daily notional turnover over $10 billion. The total value of all cryptocurrency tokens outstanding is now approximately $332 billion.
Cboe Global Markets is one of the world’s largest exchange holding companies, offering trading and investment solutions across a range of products in multiple asset classes and geographies. Included in its portfolio are options, futures, U.S. and European equities, exchange-traded products (ETPs), global FX and multi-asset volatility products.
Headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador, Cboe’s trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.