An all-time high upsurge has been noticed in the prices of Bitcoin in the wake of being approved for the futures market. On Tuesday, Bitcoin traders were surprised to see a phenomenal upsurge in the costs of the Bitcoin cryptocurrency after future market giant CME announced to support it. Bitcoin surpassed $6,500 and $6,600 on Wednesday to hit a new record high hence resulting the CME to announce plans to launch bitcoin futures later this year. Its market capitalisation, or the total value of bitcoin in circulation, hit $110 billion.
CME CEO, Terry Duffy said that they have decided to introduce a Bitcoin futures contract after noticing the increasing client interest in the evolving cryptocurrency markets. The Bitcoin prices rose to an all-time high today. According to Coindesk, Bitcoin was peaking at $6,415.28 (£4,830.71) at around 2.35pm GMT. In a press hearing on Tuesday, U.S.-based exchange CME said it would introduce bitcoin futures contracts this quarter. However, it will be a subject to regulatory approval. It is believed that the introduction of such a product could bring in more numbers of institutional investors into the market.
The bitcoin futures contract will only be done in cash and would be based on the CME CF Bitcoin Reference Rate (BRR). CME CF launched in November 2016 with London-based digital trading platform Crypto Facilities. The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.
Favorable regulation has often been a catalyst for the bitcoin price to rise. For example, bitcoin saw a boost when Japanese authorities allowed shops to begin accepting bitcoin as payment earlier this year.
The Bitcoin prices opened at $6,121.80 ($4,609.72) and so far have reached a low of $6,089.47 (£4,585.98), as of 6.41pm GMT.
Some regulators have also cracked down on bitcoin trading. China recently banned cryptocurrency exchanges, for example. But the negative news has been mostly shrugged off by investors. Bitcoin is up over 500 percent year-to-date.