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CME Group Doesn't Plan to Launch Physically-Delivered Bitcoin Futures

  • Alex Dovbnya
    📰 News

    CME will not launch physically-delivered Bitcoin futures despite great demand for its cash-settled product    

CME Group Doesn't Plan to Launch Physically-Delivered Bitcoin Futures
Cover image via news.u.today
Contents

During a recent interview with Markets Media, CME's Tim McCourt says that institutions are becoming more interested in Bitcoin, but physically-delivered futures are not currently on the table for the Chicago-based exchange.

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Bakkt is off to a cold start

The underwhelming launch of Bakkt raised many questions about whether the proverbial institutional money is here for Bitcoin

As reported by U.Today, the highly anticipated launch of physical Bitcoin futures finally happened on Sept. 23 with a lot of excitement in the air. However, during its first week, the ICE-backed exchange managed to trade only $5 mln worth of contracts.

The cold reception of the new product possibly explains why CME doesn’t plan to chip away at Bakkt’s market share anytime soon.

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CME’s Bitcoin success

According to McCourt, institutions, such as hedge funds and asset managers, are becoming increasingly keen on investing in Bitcoin. However, they are not ready to jump feet-first in untested waters.

“The institutional interest in bitcoin is growing but they need time to become familiar with the market and get approval to use new products,” said McCourt.

McCourt also described CME’s Bitcoin bet as “hugely successful.” The exchange recorded a 132 percent increase in the number of cash-settled futures contracts compared to 2018.

CME Group will also launch Bitcoin options in Q1 2020.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
    📰 News

    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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