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Blockchain entrepreneurs reinvigorated by CME's Bitcoin Futures project

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The CME Group's recent decision to list regulated bitcoin futures at the end of the year Year has attracted Wall Street investors. but blockchain and fintech entrepreneurs see it as a sign of growing acceptance of cryptocurrency that will bring more traditional investors to bitcoin.

Some Wall Street investors, like Joe Saluzzi, a director of Themis Trading, see parallels between bitcoin derivatives and collateralised debt obligations that contributed to the 2008 financial crisis.

Many blockchain and fintech enthusiasts, however, see the CME movement as a sign that cryptocurrency is gaining acceptance, a development that takes into account continuous bitcoin price gains.

The & # 39; point of inflection & # 39;

"The announcement of CME marks the official point of change of bitcoin crossing the chasm to be defended exclusively by early technology enthusiasts to begin its proliferation among established financial institutions," Serafin Kion Engel, CEO of DataWallet, a blockchain portfolio for data exchange, said in a prepared statement.

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"While it was easy for critics to silly the early adopters' enthusiasm, the adoption of bitcoin by institutions such as CME gives cryptocurrency a stamp of approval that will eradicate even the most reasoned criticism that experts can express "Engel said. "This sets the stage for Bitcoin to reach its full potential and to reach a five-digit high."

Tauler Ramabaja, chief technology officer at ULedger, a blockchain-based solution for data assurance, storage and other services, said CME will allow institutional investors to take positions with bitcoin while respecting existing regulatory and counterparty requirements. ]

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"We can expect a lot of large-scale institutional money to circulate in the bitcoin and cryptocurrency ecosystem from now on, assuming that future regulation will not prevent the emergence of cryptocurrencies as a legitimate asset class ".

A benefit for encryption products?

The ability to protect against bitcoin allows the creation of all kinds of cryptographic products, in addition to simple investments and exchanges, said Bharath Rao, CEO of Leverj, a decentralized platform for the trading of crypto derivatives -change.

"Institutions have been slowly marching on the crypto market using specialized hedge funds as vehicles, but the introduction of term bitcoins by the CME opens a huge new opportunity to acquire exposure to cryptocurrency, "said Leverj. "After all, bitcoin is the standard bearer of the crypto market, and a regulated and developed trading product gives the confidence to negotiate large sizes for many institutions."

Institutional currency expected

Sheffield Clark, CEO of Coinsource, a bitcoin ATM network, said institutional investors were looking for an opportunity to profit from bitcoin growth over the past five years.

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"One of the few mishaps of Bitcoin was access to institutional money – now it's about to change," Clark said.

"This CEM decision will spark a new professional interest in the investment and trading of cryptographic assets," said Tor Bair, director of Enigma, a platform for investment in cryptomonnaie. "While providing a new demand for cryptographic assets, it also creates significant opportunities for investors and data-driven traders who will benefit from increased liquidity and volume."

Abhishek Pitti, CEO of Nucleus, a sensor technology provider who identifies users and perceives pressure, movement and acceleration, said that CME is more likely to get approval from Securities and Exchange Commission for its bitcoin futures. asked for such approval.

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"If CME manages to achieve this feat, one of the biggest hurdles to introducing a bitcoin ETF could soon be lifted, which would open the door for institutional investors and individuals who have not been exposed to bitcoin to participate in some of the action, "said Pitti.

"We could very well see Bitcoin multiply several times faster," says Pitti.

A note of caution

That does not mean that there will be no growing pains, though.

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Pitti noted that bitcoin is different from traditional products like gold, copper or rice that are currently traded in futures markets. As a result, there will be a lot of startup issues that CME will face because there is no other product that behaves like bitcoin.

"In addition, this merchandise can be purchased in many unregulated cryptocurrency exchanges around the world, potentially potentially driving away many traditional and conservative investors," he said.

Read also: "Playing with fire": critics condemn CME's bitcoin futures plan

Fork also raises concerns

Cryptocurrency contractors also see the SegWit2x fork, confirmed for activation on November 16, as having a potentially significant impact on bitcoin.

"I anticipate a strong bitcoin move from portfolios to stock exchanges supporting the new currency, as many will see a free money opportunity," said Perry Woodin, CEO of Node40, which offers blockchain-related services. digital currencies. accounting services.

"But what I'm going to point out, is that, under the current IRS regulations, bitcoin is indeed a form of property and is subject to capital gains tax once that it is sold I foresee similar rules for Bitcoin2x, and according to past experience, the majority of owners will blatantly ignore their responsibilities in complying with the digital currency tax . "

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