CME Chairman Emeritus Calls Bitcoin a New Asset Class

Asset Class

OK, when “The Master” speaks we all need to pay attention. Forget Jamie Dimon (bitcoin’s a fraud), Warren Buffet (bitcoin will never work) and countless others, let’s hear from one of the greatest minds in history; LEO MELAMED. For those “outside” the hallowed halls (or pits) of innovation better know as the CME (Chicago Mercantile Exchange), Leo is Chairman Emeritus and he presided over the launch of the S&P 500 futures contracts just to name one. Now with the newly announced bitcoin futures Leo shares his thoughts on how to look at bitcoin. Come on Jamie and Warren, learn something from “The Master”.

“TOKYO (Reuters) – 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 crypto-currency, Leo Melamed, Chairman Emeritus of CME Group (CME.O), said on Tuesday.

CME, the world’s largest derivatives exchange, last week announced that it would launch the futures contract of bitcoin, marking a major step in the digital currency’s path toward mainstream acceptance.

Melamed said he expects major investors to take part in bitcoin futures, which the exchange plans to start by the end of year.

“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.

Six-fold gains in the bitcoin price BTC=BTSP so far this year have stirred a debate among financial professionals on whether the digital currency represents a revolution in financial technology or just another tech bubble.

Jamie Dimon, chief executive of JPMorgan Chase & Co (JPM.N) said in September that bitcoin “is a fraud” and will blow up while regulators in many countries tightened their grip on its trading….”

Full Story at Reuters