We at FintekNews just love and adore articles by like minded people, especially since we have been recommending the hedging aspects of bitcoin for quite some time. So yes, lets get futures and options on this digital coin in the U.S. They do exist in London via CryptoFacilities which has a partnership with the CME (Chicago Mercantile Exchange) with the obvious goal of listing bitcoin futures & options here and worldwide (my guess). Check out our coverage and interviews with the CryptoFacilities leadership on our website. Lets get those futures up and going. Great article.
“Bitcoin enthusiasts eager for the digital currency to go mainstream have had a disappointing month.
The Securities and Exchange Commission on Tuesday rejected a bid to list shares of the SolidX Bitcoin Trust on an affiliate of the New York Stock Exchange. Less than three weeks earlier, the SEC denied a similar application to list a bitcoin exchange-traded fund backed by Cameron and Tyler Winklevoss. The two decisions appear to have slammed the doors on bitcoin ETFs for the time being.
That has some bitcoin fans pinning their hopes on another possible way forward: a U.S. futures contract.
“Once bitcoin futures are in the market, that paves the way for new vehicles and more liquidity that ultimately paves the way for an ETF,” said Chris Burniske, an analyst at ARK Investment Management LLC, a fund manager that has invested in bitcoin.
Mr. Burniske and others see potential for a bitcoin investment vehicle in the fine print of the March 10 order in which the SEC rejected a four-year effort by the Winklevoss brothers to launch a bitcoin ETF. The twin brothers had sought to list their Winklevoss Bitcoin Trust on the Bats BZX Exchange, now owned by CBOE Holdings Last week Bats asked the SEC to review the decision….
That was bad news for Bats and the Winklevoss brothers. But it suggests the SEC could be open to approving an exchange-traded product sometime down the road if a more thoroughly regulated U.S. exchange, such as one of the futures exchanges run by CME Group or Intercontinental Exchange, listed a bitcoin contract and trading in it took off….”
Souce: WSJ Blog