Cboe Won’t Relist Bitcoin Futures Contracts for March
“They’re equally cash settled, meaning two players transaction against each other based on the Cost, and the loser forks over USD into the winner, therefore bitcoin is never transferred by this Marketplace,” said Greenspan
The Cboe Futures Exchange reported that the company is “assessing its own approach with regard to the way it intends to continue to offer digital asset derivatives such as trading,” saying it does not have any intention to record extra contracts for trading relating to the cryptocurrency.
The Chicago Board Options Exchange first recorded its Bitcoin futures on December 10, 2017, above the listing of the Chicago Mercantile Exchange’s futures on December 17 the identical year. The two contracts went live shortly before the cost of bitcoin started to dip from its all-time high over $19,000.
“The Cboe contracts weren’t even delivering a lot of volumes anyhow. The dominant player on Wall Street remains the CME Group, whose Bitcoin futures remain in drama,” Mati Greenspan, senior market analyst in eToro, informed Bitcoin Magazine.
The Chicago Board Options Exchange (Cboe) announced that it will not list upcoming Cboe Bitcoin (“XBT”-RRB- futures contracts for trading at March 2019.
After listing its own Bitcoin futurescontract, Cboe filed multiple times with the U.S. Securities and Exchange Commission (SEC) for the acceptance of several Bitcoin ETFs, none of which have already been approved.
Critics of their Cboe stocks, that have been cash-settled contracts (no actual shipping of bitcoin), argued that the financial activity that these types of contracts created had a negative effect on Bitcoin since they did not involve the motion and transfer of physical bitcoins on-chain, therefore suppressing its own price.
Even though it isn’t verified, the motive for Cboe’s closing may be on account of its underperformance in comparison with CME’s futures contracts.