Bitcoin hits record after CME unveils plans for futures contract

Alexander Bueso WebFG News | 31 Oct, 2017 16:56 - Updated: 17:09 | | |


Bitcoin prices set a fresh record higher after the Chicago Mercantile Exchange unveiled plans to launch futures on the crypto-currency before the year was out.

As of 1651 BST, the price of a Bitcoin was 4.06% higher to $6,370.15, according to Coindesk, after hitting a record high of $6,416.39 earlier in the session.

"It's a huge development for bitcoin and a giant leap into the mainstream. Although this was a surprise, it’s was well known that the winkelvoss twins are talking to the CBOE about listing bitcoin options. The CME got in there first.

"After it’s price gains, popularity and volatility in this low vol environment it is no surprise that bitcoin is going mainstream," Kathleen Brooks, Research Director at City Index told WebFG.

The futures contracts were to be settled in cash on the basis of the CME CF Bitcoin Reference Rate which the trading venue and Crypto Facilities had begun calculating and publishing back in November 2016.

According to the CME, Bitcoins now accounted for over 54% of the total cryptocurrency market capitalization which had reached $172bn.

In parallel, trading in the Bitcoin spot market had reached a notional value of approximately $1.5bn a day.

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.