Bitcoin price live: Futures approval ‘reminiscent of financial crash’ as prices soar | City & Business | Finance

Bitcoin price live: Futures approval ‘reminiscent of financial crash’ as prices soar | City & Business | Finance

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CME, the world’s largest futures exchange, has announced plans to launch Bitcoin futures in the fourth quarter pending regulatory review.

“Given increasing client interest in the evolving cryptocurrency Markets, we have decided to introduce a Bitcoin futures contract,” Terry Duffy, CME Group chairman and CEO, said in a statement.

The futures would be settled via cash and based on its CME CF Bitcoin reference rate.

Shortly after the announcement Bitcoin rose to a record high of  $6,415.28 (£4827.50), according to CoinDesk.

The Market opened at a high of $6,447.67 (£4852.52) today and has reached a low of $6,357.91 (£4784.96). The CoinDesk tracker shows the latest price below.

Bringing you live updates on Bitcoin and the latest price news. All times BST.

8.00am: CME futures approval reminiscent of financial crash

Some analysts said the a potential futures launch could have worrying similarities to conditions which led to the financial crisis of 2007-2008.

Joe Saluzzi, a principal at Themis Trading, is worried that regulators could be persuaded to approve a growing list of exchange-traded funds (ETFs) if CME get win approval.

He tweeted: “The SEC (Securities and Exchange Commission) rejected the Bitcoin ETF because they said the underlying Bitcoin Markets were unregulated.

“Apparently, the  CME doesn’t care about the underlying Bitcoin Markets and the potential for fraudulent and manipulative acts.

“Placing a “futures” Market wrapper on an unregulated Market to generate volume seems like a profit-oriented motive.

“Remember the CDO (collateralised debt obligation) wrapper around all those crappy mortgages during the financial crisis?  Placing a wrapper doesn’t make it safe.”

Mr Saluzzi told CNBC: “I have no problem with Bitcoin. I like the concept.

“I have a problem that on Wall Street the innovators are trying to package something up and put a derivative label on it when they really don’t know what’s underneath. 

HOW TO BUY Bitcoin

“It reminds me of the financial crisis all over again.”

“There could be spoofing, there could be layering, there could be all sorts of manipulation going on in Bitcoin now, and nobody knows. “Until they say they are watching and making sure there are no manipulations and fraudulent activities, until they say we have a better regulatory system, I think we are playing with fire.”

CME has said that bringing Bitcoin to the regulated Market could increase stability.

“Offering a futures contract on a regulated Marketplace brings a number of benefits to this new Market including transparency, price discovery and risk transfer — all of which will better enable institutions and other Market participants to manage their risk as the Bitcoin Market develops,” a spokesman said.


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