A new era kicks off today with the listing of the first bitcoin futures contract on the Chicago Board Options Exchange (CBOE). When trading begins at 5 p.m. U.S. central time on the world's largest options and futures exchange, investors will be able to bet on – or against – bitcoin without actually buying or selling it.
A sign of maturity for the cryptocurrency ecosystem at large, the contract listing is just one of several such milestones this year, including the expected launch next week of a bitcoin futures contract from CME Group. What's more, it could also revive another effort to bring liquidity and mainstream respectability to the cryptocurrency – namely, the development of a bitcoin exchange-traded fund (ETF).
In an interview, Edward Tilly, CBOE's chief executive officer, said the exchange may use information gleaned from futures trading to make a case to the Securities and Exchange Commission (SEC) to allow Bitcoin-linked ETFs and exchange-traded notes (ETNs).
ETFs are tradable securities tied to an index, commodity or basket of assets, and are available for purchase by retail investors. Bitcoin ETFs could conceivably be an appealing option for individuals enticed by the asset's price gains, but put off by the hassles and risks of storing and safeguarding it.
Read more of this here...We are hoping that SEC by next year will finally grant their much-sought approval for the establishment of ETFs which would further diversify the available platforms and market for Bitcoin. Unlike the Bitcoin Futures, an ETF would really own or will invest with Bitcoin and maybe other cryptocurrencies but individual buyers of the said tool will own the notes rather than the assets on the basket directly. I actually find this complete more convenient and more acceptable unlike with the futures which is more of a gambling to me. Programs like ICONOMI, MCAP and Starta have this similar concept.
