CFTC Bitcoin Futures Approval Fuels Bitcoin Bulls, while Bitcoin price surges to $11,500 this weekend. The sky is the limit? This we will still have to see.
4 December, AtoZForex – Earlier last week, the Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) have self-certified new contracts for Bitcoin futures products. Moreover, the Cantor Exchange (Cantor) has certified a new contract for Bitcoin Binary Options.
CFTC Chief on Bitcoin products
The CFTC Chief J. Christopher Giancarlo has shared his outlook in regards to the digital currency. He has stated:
“Bitcoin, a virtual currency, is a commodity unlike any the Commission has dealt with in the past. As a result, we have had extensive discussions with the exchanges regarding the proposed contracts, and CME, CFE, and Cantor have agreed to significant enhancements to protect customers and maintain orderly markets.
In working with the Commission, CME, CFE and Cantor have set an appropriate standard for oversight over these bitcoin contracts given the CFTC’s limited statutory ability to oversee the cash market for bitcoin.”
Mr. Giancarlo further stated that market players should pay attention to the “relatively nascent underlying cash markets and exchanges for bitcoin.” He further explained that these markets remain mostly unregulated since CFTC has limited statutory authority.
The official also highlighted the concerns in regards to the price volatility and trading practices in the cryptocurrency market. Mr. Giancarlo has stated, according to the official CFTC release:
“We expect that the futures exchanges, through information sharing agreements, will be monitoring the trading activity on the relevant cash platforms for potential impacts on the futures contracts’ price discovery process, including potential market manipulation and market dislocations due to flash rallies and crashes and trading outages. Nevertheless, investors should be aware of the potentially high level of volatility and risk in trading these contracts.”
CFTC Bitcoin Futures Approval Fuels Bitcoin Bulls
The decision about Bitcoin futures did not come quick- the regulatory bodies have had a lot of heated discussions over the topic. Numerous agreements and rules have been set. For instance, the CFTC, CME, CFE, and Cantor will organize to the extent possible in any surveillance activities. This includes providing the CFTC with additional surveillance information.
The CFTC will closely collaborate with the National Future Association (NFA). In fact, the NFA has issued an investor advisory in regards to this topic to its members.
Following the US regulators’ decision, Bitcoin prices rallied, hitting $11,500 this weekend.
As of now, the leading cryptocurrency is trading at $11,626.
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