BREAKING: CMEGroup announce launch of Bitcoin reference rate and real-time index

[spartak_t]

Here is the link to the announcement!

About CME Group:

"As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

CME Group is the world's leading and most diverse derivatives marketplace, handling 3 billion contracts worth approximately $1 quadrillion annually (on average)."

This is a very good news for Bitcoin's exposure!

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[LiteCoinGuy]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away. 

[spartak_t]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away. 

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

[Za1n]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away.  

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

Nah, LiteCoinGuy got it right. This Satoshi/Wright stuff will blow over regardless of how it ends up, but the CME adding a BTC reference rate and index will have long term implications for Bitcoin trading. This will put Bitcoin in front of large dollar traders (think institutional investors, mutual funds, etc.) and even offers a form of legitimacy to Bitcoin to the financial world that has until now been missing. This could potentially bring Bitcoin from a Billion dollar market to the Big T.

[SFR10]

This is actually a huge news as well, specially for traders. It will give a real exposure and added demand as result of this move (when is launched in 4th Q). I really do like the effect RTI product could have in terms of impact but what's the point of BRR, I really can't understand it's benefit towards BTCitcoin in a any way, unless I'm missing something.

[spartak_t]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away.  

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

Nah, LiteCoinGuy got it right. This Satoshi/Wright stuff will blow over regardless of how it ends up, but the CME adding a BTC reference rate and index will have long term implications for Bitcoin trading. This will put Bitcoin in front of large dollar traders (think institutional investors, mutual funds, etc.) and even offers a form of legitimacy to Bitcoin to the financial world that has until now been missing. This could potentially bring Bitcoin from a Billion dollar market to the Big T.

I know that as I am certified stock broker (though it is not my real life job), but my point was that Wright was/is the "news of the day" so I find it normal.

[poncho32]

Here is the link to the announcement!

About CME Group:

<snip>

Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes

<snip>

Is Bitcoin going to be listed on any of those exchanges now, or in the near future?

Is the reference rate and real time index active already, or will we have to wait for it to launch?

Is the Local Bitcoins price included in the calculation that works out the reference rate?

[spartak_t]

Is Bitcoin going to be listed on any of those exchanges now, or in the near future?

Is the reference rate and real time index active already, or will we have to wait for it to launch?

Is the Local Bitcoins price included in the calculation that works out the reference rate?

Looks like they will first start with Bitstamp, Coinbase, Genesis, itBit and Kraken. Read this.

[Za1n]

This is actually a huge news as well, specially for traders. It will give a real exposure and added demand as result of this move (when is launched in 4th Q). I really do like the effect RTI product could have in terms of impact but what's the point of BRR, I really can't understand it's benefit towards BTCitcoin in a any way, unless I'm missing something.

The issue here is that most people reading this forum do not appreciate how big this news really is. You are correct in that the RTI will be much like the current price indexes available and that which normal or day traders use, but the BRR is more along the lines of a Daily Fix rate like for gold or silver. Normal people will not be too concerned with this, but for institutional investors who are interested in large quantities, millions of dollars at a time, they will use this rate as the intra-day rates are too noisy.

[Za1n]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away.  

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

Nah, LiteCoinGuy got it right. This Satoshi/Wright stuff will blow over regardless of how it ends up, but the CME adding a BTC reference rate and index will have long term implications for Bitcoin trading. This will put Bitcoin in front of large dollar traders (think institutional investors, mutual funds, etc.) and even offers a form of legitimacy to Bitcoin to the financial world that has until now been missing. This could potentially bring Bitcoin from a Billion dollar market to the Big T.

I know that as I am certified stock broker (though it is not my real life job), but my point was that Wright was/is the "news of the day" so I find it normal.

Gottcha, I misinterpreted your use of bigger deal too literally. Yes, the Satoshi scandal (shall we call it?) is certainly a bigger deal to most people than real news.

[Denker]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away.  

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

Nah, LiteCoinGuy got it right. This Satoshi/Wright stuff will blow over regardless of how it ends up, but the CME adding a BTC reference rate and index will have long term implications for Bitcoin trading. This will put Bitcoin in front of large dollar traders (think institutional investors, mutual funds, etc.) and even offers a form of legitimacy to Bitcoin to the financial world that has until now been missing. This could potentially bring Bitcoin from a Billion dollar market to the Big T.

Thank you.
This is some kind of explanation I was looking for as I did not understand what effect this could have to Bitcoin.
Really some big news!

[spartak_t]

Thank you.
This is some kind of explanation I was looking for as I did not understand what effect this could have to Bitcoin.
Really some big news!

Well, considering that CME makes probably more than $1Bn in profits alone, it is kinda of a big deal.

[LiteCoinGuy]

+ Bitcoin ETF in the next 1-2 years - very nice. 

[Za1n]

Thank you.
This is some kind of explanation I was looking for as I did not understand what effect this could have to Bitcoin.
Really some big news!

Well, considering that CME makes probably more than $1Bn in profits alone, it is kinda of a big deal.

Yes, this is a big, big deal.

To me the key quote from the press release is the following:

"The availability of robust reference prices with independent oversight is key to the professionalization of bitcoin trading and further establishes digital assets as a new asset class," said Dr. Timo Schlaefer, Crypto Facilities. "We are excited to work with CME Group on the construction and implementation of this reference rate and index."

As I said earlier, this will lend a ton of legitimacy to Bitcoin being a viable trading commodity to big financial players, which is basically what the quote is saying. Up until now, in the major financial world, BTC has been thought of as the cute thing people trade while sitting in their mom's basements, but now being thought of as "a new asset class" opens up a lot of new doors and opportunities. Think of these index additions much the same way you would of a celebrity endorsement of a product, but in this case it is a financial heavyweight endorsement.

Now this doesn't mean BTC will skyrocket and be traded everywhere overnight, but it is certainly a major step forward in that direction. Once you start to get the option to choose BTC as one of your Fidelity or Vanguard retirement fund picks, then you will know we have arrived.

[spartak_t]

Now this doesn't mean BTC will skyrocket and be traded everywhere overnight, but it is certainly a major step forward in that direction. Once you start to get the option to choose BTC as one of your Fidelity or Vanguard retirement fund picks, then you will know we have arrived.

Who knows? Warren Buffet for example might change his mind on Bitcoin!

[Denker]

Thank you.
This is some kind of explanation I was looking for as I did not understand what effect this could have to Bitcoin.
Really some big news!

Well, considering that CME makes probably more than $1Bn in profits alone, it is kinda of a big deal.

Yes, this is a big, big deal.

To me the key quote from the press release is the following:

"The availability of robust reference prices with independent oversight is key to the professionalization of bitcoin trading and further establishes digital assets as a new asset class," said Dr. Timo Schlaefer, Crypto Facilities. "We are excited to work with CME Group on the construction and implementation of this reference rate and index."

As I said earlier, this will lend a ton of legitimacy to Bitcoin being a viable trading commodity to big financial players, which is basically what the quote is saying. Up until now, in the major financial world, BTC has been thought of as the cute thing people trade while sitting in their mom's basements, but now being thought of as "a new asset class" opens up a lot of new doors and opportunities. Think of these index additions much the same way you would of a celebrity endorsement of a product, but in this case it is a financial heavyweight endorsement.

Now this doesn't mean BTC will skyrocket and be traded everywhere overnight, but it is certainly a major step forward in that direction. Once you start to get the option to choose BTC as one of your Fidelity or Vanguard retirement fund picks, then you will know we have arrived.

I remember Trace Mayer predicted something like that some while ago in one of his podiums.
I watched this on youtube.
There he spoke about Bitcoin and it's 7 network effects and that one of it will be Bitcoin becoming a new type of asset class, crypto asset as he named it.
I will try to find this part.That was really interesting.

[alyssa85]

As I said earlier, this will lend a ton of legitimacy to Bitcoin being a viable trading commodity to big financial players, which is basically what the quote is saying. Up until now, in the major financial world, BTC has been thought of as the cute thing people trade while sitting in their mom's basements, but now being thought of as "a new asset class" opens up a lot of new doors and opportunities. Think of these index additions much the same way you would of a celebrity endorsement of a product, but in this case it is a financial heavyweight endorsement.

Now this doesn't mean BTC will skyrocket and be traded everywhere overnight, but it is certainly a major step forward in that direction. Once you start to get the option to choose BTC as one of your Fidelity or Vanguard retirement fund picks, then you will know we have arrived.

Bitcoin is still not liquid enough for the big financial players - but what this will allow them to do is "trade the index" outside the bitcoin space. I wonder how many will take it up... My guess is that they'll wait till the halvening is over and also look to see whether Satoshi starts moving his coins.

[spartak_t]

From what I know, CME plans to add Bitcoin in Q4/2016, which means it will be after the reward halving.

[Elwar]

From what I know, CME plans to add Bitcoin in Q4/2016, which means it will be after the reward halving.

[davinchi]

i posted that yesterday and it is a big deal but the "Satoshi" news pushed that one away. 

Indeed it is, but Craig Wright's "revealing" as Satoshi is kinda of a bigger deal.

Well, I wouldn't say it's  a "bigger deal" than CME adding bitcoin reference rate and real-time index. I mean, I just can't have myself to believe he is Satoshi. Probably when he signs a message/key of the address that we know belongs to Satoshi, I'll believe he is legit.