Bitcoin has moved further towards mainstream investing with the commencement of trading on the huge Chicago Mercantile Exchange (CME) financial futures market.
Last week, Chicago’s CBOE exchange began Bitcoin futures trading in which investors can essentially bet on a future price, however the CME is far bigger.
The CME contract price will be obtained from multiple exchanges, potentially offering investors more transparency about the value.
“The CME [futures] contract is based on a broader array of exchanges,” said Matt Osborne, chief investment officer of Altegris, which has $2.5bn in alternative investments.
Futures trading offers a way for institutional investors to buy Bitcoin as they are unable to directly invest in Bitcoin because of the nature of the Bitcoin market.
Futures trading may see significant volumes of investment in Bitcoin, helping to prople the price upwards, however there is also the chance that futures trading will push the price down as traders bet on future lower prices.