On Chicago Mercantile Exchange’s decision to allow Bitcoin-related products, Owen Davis at Dealbreaker writes Hedge Funders: You No Longer Have Any Excuse Not To Leap Headlong Into The Bitcoin Frenzy:
According to the press release, CME is looking to launch sometime in Q4, joining CBOE in the race to start hawking bitcoin-related products. The data underlying the futures will come from Gemini Trust, the Winklevoss twins’ exchange. Bitcoin went vertical on the news.
And for good reason. Not only does this mean hedge funds can now blithely launch themselves into the crypto orgy with at least a little peace of mind, but they can do so purely on the basis of cash-settled futures that involve no underlying transfer of actual bitcoins, a process that remains rife with inefficiencies and risks like being hacked.