The Chicago Board Options Exchange (CBOE) has announced that its planned Bitcoin (EXANTE: Bitcoin) futures product will begin trading on Dec. 10.
In a statement published today, the firm said that trading would commence at 5 p.m. CT, with the first full day of trading starting that Monday.
Cboe Futures Exchange plans to offer trading in bitcoin futures beginning at 5 p.m. CT on Dec. 10 at the start of Global Trading Hours. See the press release, https://t.co/dNPUXcZgzv #bitcoin $XBT pic.twitter.com/ciexv3OVoI
— Cboe (@CBOE) December 4, 2017
Ed Tilly, Chairman and Chief Executive Officer of Cboe Global Markets, said: "Given the unprecedented interest in bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure. We are committed to encouraging fairness and liquidity in the bitcoin market. To promote this, we will initially offer XBT futures trading for free."
The contracts will be cash-settled, and the price will be based on the daily auction price from Gemini, a cryptocurrency exchange based out of New York. Cboe will waive trading fees for these products for the duration of December.
“Developing a regulated derivatives market is the next logical and crucial step towards advancing the broader digital asset market. We have been working for years to build infrastructure to grow the digital asset market and today’s news marks a significant milestone,” said Tyler Winklevoss, CEO of Gemini.
The U.S. Commodity Futures Trading Commission said on Friday it would allow CME Group Inc and CBOE Global Markets Inc to list Bitcoin futures, after the rival bourses showed their proposed contracts and trading arrangements met necessary requirements. CME Group Inc will begin Bitcoin futures trading on December 18.