The popular digital currency known as Bitcoin has achieved a new record high after financial market company CME announced their plans to launch a futures contract.
Bitcoin has seen a gradual increase these past few days, breaking the $6.300 record established on October 29 and the $6.400 mark reached yesterday with the cryptocurrency easily rising past $6.500 to a whopping $6,616 on Wednesday morning in London.
CME chairman and CEO Terry Duffy put the decision to implement futures contracts on popular demand as he states:
“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract.”
The news comes as a bit of a surprise considering CME’s president Bryan Durkin stance towards the currency over a month ago, describing it as “very nascent” and showing reticence in regards to implementing a futures contract for the digital currency.
CME has been laying the foundations, regardless, having launched a bitcoin price index in 2016 alongside bitcoin derivative broker Crypto Facilities Ltd. The futures contract will be cash-settled at the London-based company and will be based on the CME CF Bitcoin Reference Rate. Futures are essentially legal agreements between two parties to buy or sell products at a specified price and time in the future.
The announcement in itself gives this digital currency some momentum towards gradually becoming mainstream. eToro platform analyst Mati Greenspan is certain of the cryptocurrency’s potential as he notes:
“Not only is this a monumental testament to the belief in bitcoin and the demand in the market but it will also boost the liquidity by opening the market to many more interested players.”
There are still people who are opposed to accepting digital currency as the standard norm. Both JPMorgan Chase CEO Jamie Dimon and BlackRock CEO Larry Fink have openly dismissed the digital currency as being a “fraud” or an “index of money laundering”.
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