Very few people would have imagined just a year past the rapid pace of bitcoin adoption by established financial institutions now. We’re currently seeing two of the most significant exchange holding companies in the world, CME and Cboe, racing to be the very first to reply Wall Street’s desire for bitcoin derivatives — and Cboe just got a leg up to its rival.
Attempting to further entice investors to its place over CME’s, the Cboe head additionally announced that trading will be liberated through December.
Ed Tilly, Chairman and Chief Executive Officer of Cboe Global Markets, said: “Given that the unprecedented interest in bitcoin, it’s critical we provide clients the trading instruments to assist them to express their perspectives and hedge their vulnerability. We are committed to encouraging fairness and liquidity from the bitcoin market. To promote this, we’ll first offer XBT futures trading for free.”
The Cboe’s bitcoin futures will trade on CFE under the ticker symbol ‘XBT.’ The new tools are cash-settled contracts based on the Gemini exchange’s auction price for bitcoin, denominated in U.S. dollars.
The company explains that its XBT futures are specifically designed to permit participants to execute straightforward trading approaches, through settlement to a single, tradeable market price.
It previously revealed that they will have multiple contracts with various expiry cycles along with four serial expirations, among other details. It has even been suggested that in the future Cboe can add futures trading on bitcoin cash to differentiate its offering in all the bigger CME.