Derivatives Giant CME Group to Launch Bitcoin Futures Contract

Derivatives marketplace operator CME Group has announced plans to launch a bitcoin futures product.

AccessTimeIconOct 31, 2017 at 1:52 p.m. UTC
Updated Sep 13, 2021 at 7:06 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Derivatives marketplace operator CME Group has announced plans to launch a bitcoin futures product in the fourth quarter of this year.

Though the exact release date has yet to be revealed, CME said that the futures would be settled via cash and based on its CME CF Bitcoin Reference Rate, an index it debuted in Nov. 2016 in partnership with London-based Crypto Facilities. The futures would be listed on CME, the company said.

Terry Duffy, CME Group chairman and CEO, said in a statement:

"Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract. As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities."

According to the company, the launch is contingent on receiving approval from U.S. regulators. As previously reported, recent efforts to create financial products around the cryptocurrency have hit some headwinds, particularly those that involve the creation of derivatives contracts.

That said, startups like LedgerX – which is licensed as both a swap execution facility and a derivatives clearing organization – have already moved to capture some of the interest and demand in these products. Established firms such as CBOE are seeking to list similar derivatives as well.

Disclosure: CME Group is an investor in Digital Currency Group, CoinDesk's parent company.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.