Cboe Will Not Relist Bitcoin Futures Contracts for March

March 16, 2019
67 Views

The Chicago Board Options Exchange (Cboe) announced that it will not list upcoming Cboe Bitcoin (“XBT”) futures contracts for trading in March 2019.

The Cboe Futures Exchange said that the company is “assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading,” stating that it has no intention to list additional contracts for trading relating to the cryptocurrency.

Though it is not confirmed, the reason behind Cboe’s futures closing might be due to its underperformance in comparison to CME’s futures contracts.

“The Cboe contracts weren’t delivering a lot of volumes anyway. The dominant player on Wall Street remains the CME Group, whose Bitcoin futures remain in play,” Mati Greenspan, senior market analyst at eToro, told Bitcoin Magazine.

The Chicago Board Options Exchange first listed its Bitcoin futures on December 10, 2017, preceding the listing of the Chicago Mercantile Exchange’s futures on December 17 of the same year. The two contracts went live shortly before the price of bitcoin began to dip from its all-time high of over $19,000.

After listing its Bitcoin futures, Cboe filed multiple times with the U.S. Securities and Exchange Commission (SEC) for the approval of several Bitcoin ETFs, none of which have been approved.

Critics of the Cboe futures, which were cash-settled contracts (no physical delivery of bitcoin), claimed that the financial activity that these types of contracts created had a negative impact on Bitcoin because they did not involve the movement and transfer of physical bitcoins on-chain, therefore suppressing its price.

“They are both cash settled, meaning that two players trade against each other based on the price, and the loser forks over USD to the winner, so bitcoin is never moved by this market,” said Greenspan

This article originally appeared on Bitcoin Magazine.

You may be interested

Japan to Tighten Rules on Cryptocurrency Margin Trading
Crypto News
13 views
Crypto News
13 views

Japan to Tighten Rules on Cryptocurrency Margin Trading

btcethereumadmin - March 19, 2019

Japan is putting in place new, stricter rules for cryptocurrency margin trading from next year. According to a report from…

Galaxy Digital Backs $5.25 Million Round for Blockchain Staking Startup
Crypto News
13 views
Crypto News
13 views

Galaxy Digital Backs $5.25 Million Round for Blockchain Staking Startup

btcethereumadmin - March 19, 2019

Blockchain staking startup Bison Trails has raised $5.25 million in a series seed funding round backed by Mike Novogratz’s Galaxy…

Bitmain’s Latest Zcash Miner Claimed to Have Tripled Hashing Power
Crypto News
11 views
Crypto News
11 views

Bitmain’s Latest Zcash Miner Claimed to Have Tripled Hashing Power

btcethereumadmin - March 19, 2019

Cryptocurrency mining giant Bitmain has launched a new miner for the privacy-oriented cryptocurrency zcash, which it claims, has three times…

Leave a Comment

Your email address will not be published.