Leave Bitcoin Futures out of bear market speculations: CME exec
The overall crypto market has had a bad year. The market cap reduced by more than 50% this year suggesting the crypto market is fighting a severe bearish trend. Different speculations have spread among the crypto community regarding a relentless bearish trend that has affected the crypto market. One among these speculations was Bitcoin futures trading.
An executive of CME Group has put these arguments to rest. Tim McCourt managing director and global head of equity products and alternative investments of CME Group clarified that Bitcoin futures are not responsible for the price dip in the crypto market this year, according to a report by Coindesk.
Tim McCourt who was speaking to Phillip Gillespie, CEO of B2C2 Japan, at Coindesk’s Consensus Singapore 2018 event, said that the addition of Bitcoin futures to the crypto market is not the reason for the consistently bearish market this year. “We are just a small part of the market,” he said.
McCourt said that Bitcoin Futures market is sporting exceptional growth rates. “Out of the 40 percent of bitcoin futures trading on CME that’s outside the U.S., 21 percent are coming from Asia,” he added. Don Wilson, founder of trading company DRW, who was also a speaker at the Coindesk event said that Asia’s futures trading volumes are almost the same as the volumes seen in the U.S, implying that Bitcoin futures are in high demand across borders.
McCourt revealed that CME launched Bitcoin futures to meet the increasing demands of customers who wanted to trade crypto derivatives on a regulated exchange. “They want a regulated exchange to provide that vehicle with risk management to increase their comfort level,” he said. Also, Gillespie mentioned that regulations are being taken more seriously as larger exchanges are exploring crypto derivatives and spot trading.
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