Another forward step in bitcoin trading. And, of course, it’s happening in Chicago the birthplace of listed options, futures and financial innovation. Trading Technologies International (Chicago) worked out a deal with Coinbase (crypto-currency exchange operator) to let institutional investors get direct market access to BOTH bitcoin AND bitcoin futures. This HAS to happen and there will be more innovation coming. Access and clearing bitcoin with all the derivatives associated with it MUST come under one “umbrella” for those markets to grow. Oh wait! It is beginning to happen. Circle March on your calendar cause that’s when it begins. Congrats “TT” and Coinbase.
“NEW YORK (Reuters) – Trading software provider Trading Technologies International Inc said on Thursday it has teamed up with crypto-currency exchange operator Coinbase to give institutional traders direct market access to both bitcoin and bitcoin futures beginning in March.
The partnership means that large trading firms will have both bitcoin spot prices and bitcoin futures on the same screen, positioning them to potentially reap more profits trading the spread between the two financial products.
The firms withheld the financial terms of the deal.
Much of the interest in trading bitcoin has come from retail traders, but institutional participation has been picking up steam, especially over the past year, Adam White, general manager of Coinbase’s Global Digital Asset Exchange (GDAX), one of the biggest cryptocurrency exchanges, said in an interview.
“This is the first time hundreds, if not thousands of institutional clients will have the ability to trade the crypto spot market side by side with 45 other markets,” he said.
Trading Technologies, known as TT, is connected to 45 markets worldwide, including CME Group (CME.O) and Cboe Global Markets Inc (CBOE.O), which both introduced bitcoin futures trading in December.
The cash-settled futures give speculators a chance to short bitcoin, meaning they are betting the price of the underlying security will fall. One bitcoin was worth around $11,150 on Thursday morning, down from a high of around $19,000 last month…”