This year has been a roller coaster ride for Bitcoin, with the forking of Bitcoin into Bitcoin (BTC) and Bitcoin Cash (BCC). Additionally, the value price of Bitcoin achieved tremendous heights. It has increased by almost 700% so far, and as of November 21, 2017, is worth $8,250. Most investors believe this rise is due to the announcement of the launch of bitcoin futures by the Chicago Mercantile Exchange (CME).
The world’s leading derivatives marketplace, CME, announced the launch of the new bitcoin futures by the end of this year, although the exchange may face a minor delay. The introduction of bitcoin futures into the industry was announced last month by CME.
Bitcoin futures will provide investors a safer environment in which to participate in bitcoin exchanges. In a future contract, investors agree on an exchange price for a future date. The contract binds the two investing parties to fulfill their agreement, one to sell at that price and the other to buy the contract comes due. It has emerged as an important tool to offset the risk of price fluctuation in the digital market.
Earlier, JP Morgan’s CEO, James Dimon, openly criticized digital currencies and challenged its viability as an investment. He called cryptocurrencies a ‘fraud’ and called the investors of the virtual currencies ‘stupid’. On another occasion, he threatened to fire anyone who was discovered to be involved in the virtual currency business. No employees have claimed to have been dismissed.
According to a Wall Street Journal report, JP Morgan Chase & Co. is now considering providing access to CME’s upcoming bitcoin futures via its own futures-brokerage division. With JP Morgan acting as a broker, it will attract masses of investors and traders to deal in CME’s bitcoin futures. Investors will jump at the chance to go short or long on the price value of bitcoin, without actually having to come in direct contact with the asset.
With the growing support of large financial institutions, bitcoin futures will be a reality in the near future.
JP Morgan Chase to introduce bitcoin futures?
According to a Wall Street Journal report, JP Morgan Chase & Co. is now considering providing access to CME’s upcoming bitcoin futures via its own futures-brokerage division. With JP Morgan acting as a broker, it will attract masses of investors and traders to deal in CME’s bitcoin futures.
Published on Nov 24, 2017 19:58 By Danish Yasin