CME Group is again showing its interest in a futures offering for Europe, albeit with slight adjustments.
Crypto and stock market: a must?
Futures are a preferred solution for investors wishing to speculate on cryptocurrency prices. Thanks to futures contracts, many enthusiasts can pocket some profits on the price of Bitcoin.
The American group CME, the main futures exchange, has been interested in digital assets for some time, offering several offerings or indices based on various tokens. The company launched a contract offering combining bitcoin, ethereum and fiat currencies. Offered in BTC/EURO or ETH/EURO pairs, these are created as derivatives of potential already existing in dollars.
Continued uncertainty in cryptocurrency markets coupled with strong growth and deep liquidity in our existing Bitcoin and Ether futures contracts is creating increased demand for risk management solutions for institutional investors outside the US. Our Bitcoin Euro and Ether Euro futures will provide clients with precise tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.
CME Group chief Tim McCourt said in a statement
Limited to around fifty ETH and 5 BTC per contract, the futures offered by CME could pave the way for other offerings combining crypto and market capitalization. So it would seem that, in order to be accepted, cryptocurrency will have to ally itself with more traditional systems.
Finally, we must not forget the risk carried by those who invest in futures. Their assets are locked up throughout the contract with little chance of making money.
Is market speculation returning?
Despite what is believed to be both the industry side and the traditional market built to coexist, CME Group’s offering testifies to a troubling event for crypto. Indeed, these futures contracts exhibit the constant presence of speculation.
The latter suffered a lot during the crypto winter and is coming back stronger as the digital asset economy is just starting to recover from the crisis. The purge doesn’t seem quite over. For speculation, it would appear that this is the remaining objection to the crypto sector. A new bubble look therefore seems inevitable in the future, unless a new electroshock shakes up the community again. All actors and enthusiasts can do is prepare as much as possible for future twists.
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