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The announcement of the CME group that it indents to list regulated bitcoin futures worries some skeptics. will lead to a catastrophic economic event that will recall the financial crisis of 2008.
CME Group announces futures on bitcoins
Tuesday morning, CME Group – the largest regulated derivatives exchange in the world – announced plans to list bitcoin futures by the end of the year. The availability of these commercial-grade products is likely to bring more Wall Street investors into the cryptocurrency ecosystem, and analysts say the Securities and Exchange Commission (SEC) will almost certainly endorse an exchange-traded fund ( ETF) trading futures bitcoins near future.
The CME announcement was a welcome surprise to cryptocurrency investors, many of whom were already celebrating the ninth anniversary of Bitcoin – the anniversary of the release of Bitcoin's original white paper . The price of bitcoin quickly reached a new record, reaching a global average of $ 6,400 and extending up to $ 6,450 on Bitfinex.
"Playing with fire"
However, as reported by CNBC, not all Wall Street investors expect the launch of derivatives bitcoin. In fact, some claim to see parallels between bitcoin derivatives and collateral debt obligations (CDOs) that contributed to the 2008 financial crisis.
"I have no problem with bitcoin, I like the concept," said Joe Saluzzi, director at Themis Trading. "I have a problem in Wall Street: The innovators are trying to pack something and put a derivative label on it when they really do not know what's behind it, it reminds me of the financial crisis again. "
He explains that because the price of bitcoin presents a significant variance between stock exchanges, bitcoin derivatives pose significant risks for the market. In addition, he says that because cryptocurrency transactions remain largely unregulated, traders can use market manipulation strategies with impunity.
"There could be spoofing, there could be layers, there could be all kinds of bitcoin manipulations now, and no one knows it," Saluzzi said. "Until they say that they are watching and make sure that there are no fraudulent manipulations and activities, up to the end of the day. to what they say we have a better regulation system, I think we play with fire. "
The real problem, continues Saluzzi, is the inevitable launch of Bitcoin ETFs. He says that if institutional investors need to be aware of the risks they face by trading bitcoin derivatives, retail investors will likely invest in ETFs without really understanding the risks involved, perhaps considering that they are solid financial products since they are listed on regulated exchanges. "I think we play with fire," he concluded.
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