As bitcoin futures trading is set to commence on another exchange, Bitcoin, the cryptocurrency, is heading towards the $20,000 mark.
Futures contracts on the cryptocurrency with CME Group will start later on Sunday which is anticipated to bring a greater volume of trades of a larger size as compared to those on the Cboe market, on which the futures debuted last week.
A rival of Cboe, CME, is the largest derivatives exchange operator in the world.
The launch is perceived as another crucial step in the move of bitcoin towards acceptability among large institutional investors. To date, the cryptocurrency has experienced high levels of volatility, and it has only been accessible through markets that are largely unregulated.
Not like the Cboe contracts, the CME contracts will be priced off an index of data from various cryptocurrency exchanges, instead of only one.
“So there is a possibility that the CME contract may generate more interest and more volume,” Matt Osborne from Altegris stated.
Meanwhile, from Monday, TD Ameritrade, an online brokerage, will add bitcoin futures trading to its platform amid an increasing demand for the cryptocurrency. It will provide access to Cboe contracts.
Today, the price of Bitcoin rose as high as $19,783 before going back down to about $19,000.
Last week, investors were warned last week by the top financial regulator of the United Kingdom to be prepared to lose all of their money if they place cash into bitcoin.