Cryptocurrency markets are on fire once again as the total capitalization of all digital assets is now over $479 billion. It's safe to say that the world is taking cryptocurrency solutions and blockchain technology a bit more seriously these days. Mainstream media has been covering bitcoin’s phenomenal rise every single day as publications like the Wall Street Journal, CNBC, and Bloomberg are writing BTC headlines nearly every day. Further, this week the largest U.S. options exchange, Cboe, launched the first U.S. futures market tied to the price of bitcoin. In addition to this the most prominent options exchange in the world, CME Group, will be launching their futures products this coming weekend. The fact is everyone is watching bitcoin and cryptocurrencies now, and proponents are elated with excitement.
Coinmama's Weekly Roundup
Chicago Board Options Exchange Launches Bitcoin-based Futures
The big news this week for bitcoin fans was the introduction of the Chicago Board Options Exchange (Cboe) bitcoin derivatives products. Futures markets are exchanges where traders bet on the price of bitcoin within a particular time frame. Earlier in November, Chris Concannon, Cboe Global’s President told the press, “Overall, the cryptocurrency space is the space that I think we believe in and certainly our competitor across town believes in as well and I‘m just encouraged by that validation.” On the first day of trading Cboe’s bitcoin futures contracts traded at all-time highs reaching well over the $18,000 range. The website was hammered by traffic and the first day’s trading session was halted due to volatile spot markets.
Hong Kong’s Finance Regulator Issues Warning About Bitcoin Futures
On December 11 the Hong Kong Finance regulator issued a warning in the legislation circular concerning bitcoin-based futures. The Securities and Futures Commission (SFC) is a deep presence when it comes to derivatives markets within the country. Specifically, the SFC official reveals the U.S. financial companies Cboe and CME Group are launching futures markets and regulators are leery. "Bitcoin Futures have been or will soon be launched by certain well-established futures and commodities exchanges in the U.S. which are regulated by the Commodity Futures Trading Commission and authorized by the Securities and Futures Commission SFC to provide automated trading services. The industry is reminded that a party is required to have an appropriate license with the SFC if it provides any other business services relating to bitcoin futures."
The Multi-Signature Wallet Company Bitgo Raises $42 Million
Investments in the world of cryptocurrencies and blockchain solutions continue to grow. This week the multi-signature wallet producer Bitgo raised 42Mn in Series B funding. Multi-signature technology is when multiple users share keys to a bitcoin wallet, and each person has to authorize sending the funds. Valor Equity Partners led the investment round, and CME Group had also injected capital into the company. According to Mike Belshe, the CEO of Bitgo the firm sees significant opportunities on the rise and they are expanding their resources.
U.S. President Donald Trump Signs a Bill That Includes Blockchain Research
The U.S. government and its President Donald Trump recently enacted a military spending bill that also includes blockchain cybersecurity research. This means a dedicated team will be funded to research and develop distributed ledger studies. The bill states, "[Blockchain research for the potential offensive and defensive cyber applications of blockchain technology and other distributed database technologies." Trump signed the bill into law on December 12, 2017, which grants the dedicated R&D. Further the text details “an assessment of the use or planned use of such technologies by the Federal Government and critical infrastructure networks will be developed.”
Futures Markets Push Positivity Into the Heart of Bitcoin Exchange Traded Funds
The long-awaited exchange-traded funds may now take place since the first U.S. bitcoin-based futures markets have been launched. This week REX ETFs and VanEck Vectors applied for a few different kinds of ETFs in hopes to be approved for 2018. Both firms withdrew their initial applications due to the uncertainty of the U.S. Securities and Exchange Commission (SEC). "The regulator's staff expressed the view that it is the Commission's policy not to review a registration statement for a fund where the underlying instruments in which the fund intends to invest primarily; are not yet available," said VanEck executive Matthew Babinsky.
Overall digital asset fans are thrilled with the price highs and wonder just where this technology will bring us going forward. 2018 is approaching, and no one knows what kind of year it'll be for the decentralized currency bitcoin. Stay tuned as Coinmama counts down the latest headlines into the new year.
Coinmama’s weekly review is always on a mission to find the very best topics of interest being discussed within the digital currency space. Follow us here every week to keep up-to-date with current events concerning Bitcoin, Ethereum, and blockchain technology innovation.