Published on November 13th, 2017 | by bitcoin0
Bitcoin Bears will be able to bet against the cryptocurrency in a month
CME announced on Oct. 31 it would launch bitcoin futures by the end of the year, pending regulatory review.
The futures contract will be cash-settled according to the daily settlement price of the CME CF Bitcoin Reference Rate (BRR), which tracks a few major bitcoin exchanges.
If a trader sells a futures contract in anticipation of a decline in bitcoin, the trader locks in a gain if bitcoin subsequently drops.
Digital currency enthusiasts see the launch of bitcoin futures as another step towards establishing bitcoin as a legitimate investment asset.
Institutional investors who may be prohibited from directly purchasing bitcoin will be able to use the futures as a way to buy into the digital currency trend.