The second major derivative based on bitcoin is beginning to trade on the CME.
The CHICAGO MERCANTILE EXCHANGE Group, one of the USA's primary exchanges of options and options contracts ,opened up bitcoin futures and options for trading at 6 p.m. EST Sunday. The initial price for bitcoin futuress was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.
The digital currency has increased in popularity and gain this year while drawing concerns relating to its unpredictability.
The CME bitcoin options contracts, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not involve tangible bitcoin. They will track an index of bitcoin price. Each contract will be for 5 bitcoin.
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The Futures Industry Association has criticised the US regulator's approval of bitcoin futures.
m. Trading directly on CME is not possible unless you are a broker yourself. Then B can buy bitcoin spot and sell cash settled bitcoin futures to A; the result is that A obtains exposure to bitcoin without creating a bitcoin wallet, while B obtains a risk free investment (a synthetic T-bill).
Instead of buying Ethereum directly you are taking a short or buy position.
updated blog post
