New York – The second major security based on bitcoin is starting to trade on the Chicago Mercantile Exchange.
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The CME Group, one of the nation’s largest exchanges of options and futures in the U.S., opened up bitcoin futures for trading at 6 p.m. EST Sunday. The initial price for bitcoin futures was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.
The digital currency has exploded in popularity and value this year while drawing concerns about its volatility.
The CME bitcoin futures, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not involve actual bitcoin. They will track an index of bitcoin price. Each contract will be for 5 bitcoin. The CBOE started trading its own bitcoin futures Dec. 10.
My bro Munch says that whether it’s a real currency or a f*cking bust depends on people’s expectations of its value.