Yesterday news broke that the CME Group — the world’s largest regulated derivatives exchange was going to start trading Bitcoin futures.
Quartz.com wrote about the fact that Bitcoin could no longer be ignored.
From the article which is well worth the read,
CME’s move also suggests that bitcoin has become too big to ignore, since the exchange seemed to rule out crypto futures in the recent past. Bitcoin is just about all anyone is talking about at brokerages and trading firms, which have suffered amid rising but unusually placid markets. If futures at an exchange took off, it would be nearly impossible for any other exchange, like CME, to catch up, since scale and liquidity is important in derivatives markets.
Today Josiah Wilmoth wrote a piece on CryptoCoinsNews.com that some critics think the CME is playing with fire.
Joe Saluzzi a principal with Themis Trading pointed out things like Bitcoin itself being unregulated and open to a host of possible problems like spoofing, layering and manipulation.
But the biggest worry Saluzzi had was novice investors getting screwed in crypto etf’s.
From the article:
The real problem, Saluzzi continues, is the inevitable launch of Bitcoin ETFs. He says that while institutional investors should be aware of the risks they face by trading in bitcoin derivatives, retail investors will most likely invest in ETFs without a true understanding of the risks involved, perhaps believing that they are solid financial products since they are listed on regulated exchanges. “I think we are playing with fire,” he concluded.
How does the latest news affect your opinion on Bitcoin?
Disclaimer: The above is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Disclosure: The author currently has no positions in Bitcoin or cryptocurrencies.