Perhaps many of you already read or heard that C.M.E has announced their plan to launch bitcoin futures. When the announcement was made the price of bitcoin spiked to a record above $6,400.
Chicago Mercantile Exchange (C.M.E.) is an American financial market and worldwide marketplace leader that offers a diversified portfolio of futures (C.F.D.) and options based on interest rates, equity indexes, foreign exchange (Forex), energy, agricultural commodities, rare and precious metals, weather, and real estate.
They are basically globally trading on online platforms with products including on the S&P 500.
If you are a trader, you probably already know what a CFD (Contract for Differences) is- a tradable contract between a client and a broker, who are exchanging the difference in the current value of a share, currency, commodity or index and its value at the contract’s end. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.
Why is this a positive fact? Bitcoin’s section of the crypto market (59.6% dominance) will be for the first time integrated with a regulated market and it will be implemented in an easier form of access. Until now, many investors kept aside due to regulatory reasons or because it was too risky.
Buying and selling bitcoins will be done faster, without all the hassle. It will also prevent scams, money laundering or using it as a form of payment in black markets. The main purpose is to attract new investors that were still oriented in old-fashioned trading, giving it recognition and the opportunity to go mainstream.
Becoming mainstream, it will automatically increase the demand, therefore as per basic commerce, high demand results in increased prices.
With Wall Street jumping in the game, more and more institutional investors will focus on this complex asset and will take bitcoin to the next level! Maybe it would be wise to step in before they do? You decide!