Bitcoin is likely to become a new asset class in its own right, such as gold or stocks, which can be traded by major investors and regulated, not simply a cryptocurrency, Leo Melamed, Chairman Emeritus of CME Group (NASDAQ: CME) said on Tuesday, Reuters reported.
CME announced last week that it would launch the futures contract of Bitcoin by the end of the year, and Melamed expects major investors to take part in Bitcoin futures.
“That’s a very important step for Bitcoin’s history... We will regulate, make Bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules,” Melamed told Reuters in an interview.
The futures will allow investors to short-sell Bitcoins, making two-way bets possible, a development that he expects will attract major institutional investors, not just speculators.
Melamed said while he was initially skeptical about Bitcoin he sees similarities between it and International Monetary Market currency futures trading, which he launched as chairman of the Chicago exchange in 1972.
He says Bitcoin could go beyond being a cryptocurrency and represent a new asset class based on blockchain technology.