The Chicago Mercantile Exchange (CME) put its name in the history books when it brought Bitcoin futures to market. It’s hard to argue against how much of an important milestone this was for the world’s leading cryptocurrency. Given its impact on Bitcoin, the idea of offering altcoin futures has been rumored for some time. Putting those rumors to bed, in a recent Bloomberg interview Terry Duffy (CME CEO) has revealed that the CME currently has no plans to introduce altcoin futures.
Better to Be Safe Than Sorry
While there does appear to be an appetite for altcoin futures – Wall Street is certainly warming up to cryptos these days – the CME feels that it can’t be accommodated safely. Explaining that Bitcoin “might have been the most controversial launch of a [market] product,” he feels that before any altcoin futures can even be considered, the company should first evaluate and develop an approach for Bitcoin. The altcoin market is arguably more volatile than that of Bitcoin, which presents a series of problems, especially when it comes to seeing where these coins are likely to head in the future. Reaffirming that Bitcoin is the priority, Duffy said, “I will take a wait and see approach with Bitcoin for now.”
Plenty to Talk About
The talk surrounding altcoin futures has only got louder in recent months, with Duffy feeling that some of this chatter is irresponsible. He feels that for the CME to list altcoin futures would be “a little irresponsible right now,” as Duffy thinks that it currently has the power to do more harm than good. It’s fairly obvious that Duffy’s “irresponsible” comments were aimed at its main competitor in the Chicago Board Options Exchange (CBOE). The CBOE – after hitting the ground running with futures trading – does have plans for altcoin futures it seems. Dennis O’Callahan (CBOE Director of Product Development) says that the company is definitely “monitoring other markets.” He also said that the CBOE will “make sure that the infrastructure and everything is in place in case we want to pursue other cryptocurrencies.”
On Hold… at Least for Now
Bitcoin futures have been a huge hit amongst investors since launch. Recent figures show that the average daily volume for BTC futures has skyrocketed by 93% between Q1 2018 and Q2 2018. There is a real hunger for Bitcoin futures, but – at least as far as the CME is concerned – altcoin futures are on hold.