CME Executive Says Blaming Bitcoin Futures for the Current Crypto Bear Market is Not Accurate
CME Executive: Don't Blame Bitcoin Futures for Bear Market
The Managing Director and Global Head of Equity Products and Alternative Investments of the CME Group, Tim McCourt said not to blame Bitcoin Futures for the current bear market in cryptocurrencies.
During an event in Singapore, Mr. McCourt said that he does not believe that the introduction of Bitcoin futures affected negatively the market. It is important to remember that Bitcoin futures were launched at the end of the last year. Bitcoin experienced a sudden price increase up to $20,000 dollars and reached $5,800 just some months later.
McCourt explained that the CME and the futures contracts traded are just a small part of the general market. Moreover, he mentioned that Asian countries have increased their interest for bitcoin futures. He has also said that the activity before the opening of the markets in the US have a strong influence on the price of bitcoin futures.
“Out of the 40 percent of bitcoin futures trading on CME that’s outside the U.S., 21 percent are coming from Asia.”
DRW founder, Don Wilson, has also commented about the increased volume on Bitcoin derivatives that comes from Asia.
The Chicago Mercantile Exchange (CME) decided to launch bitcoin futures products in order to meet the demand from participants that wanted to trade these derivatives in a regulated exchange.
Due to the fact that there are larger exchanges moving into cryptocurrencies, regulators are taking the market in a much more serious way, said Phillip Gillespie, CEO of B2C2 Japan. In the future, this would be positive for institutions to start moving into cryptocurrencies.
Gillespie has also talked about the latest decisions taken by Japan’s Financial Services Agency (FSA). He explained that B2C2 has not had seen revenue in the last several months. The FSA has been imposing strict measures for crypto exchanges to be compliant with Know Your Customer (KYC) and Anti Money Laundering (AML) rules.
He said that regulators are entering the market and institutions would be ready to invest in cryptocurrencies with more professionalism and sophistication.