Bitcoin Futures, Options to Appear On Chicago Exchange

The Chicago Board Options Exchange (CBOE) and Bitcoin exchange Gemini have come to a joint agreement that will set the stage for giving traders access to Bitcoin through a more traditional and well-regulated market.

According to Cointelegraph, the CBOE and Gemini plan to allow more sophisticated options to traders as soon as later this year:

The Chicago Board Options Exchange, hereafter CBOE, and Bitcoin exchange Gemini announced a joint agreement on Aug. 2. As part of the deal, Gemini will supply data to support the CBOE in a future listing of Bitcoin derivatives.
Gemini, owned by the Winklevoss brothers is known for multimillion dollar auctions of Bitcoin and recently launched Ethereum auctions as well - although they lack the buyer interest that Bitcoin has captured. It should be noted that the CBOE and Gemini still await regulatory approval, although it is expected to be granted soon.
The news comes just days after the CFTC regulated SEF and DCO (swap execution facility and derivatives clearing organization) announced that is has received approval from the Commodity Future Trading Commission - a milestone as the first federally regulated platform to offer options and future contracts for Bitcoin.

The agreement gives the CBOE exclusivity to Gemini data that can be used to create indices. Alexander Geralis of Coin Telegraph notes that "coupled with futures and options, we see that the cryptocurrency trading space is quickly becoming more mature and sophisticated."

Tyler Winklevoss, Gemini CEO, said in a statement:

Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance, and regulatory oversight. By working with the team at CBOE, we are helping to make Bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors.”

Chief Executive Officer at CBOE Holdings, Ed Tilly, expressed some excitement over the move:

"We very much look forward to responding to the growing interest in cryptocurrencies through the creation of Bitcoin futures traded on a regulated derivatives exchange, with the many expected benefits that this brings, including transparency, price discovery, deep liquidity and centralized clearing...Gemini has demonstrated time and again its foresight and expertise in this area of finance. The team’s focus and determination to grow the Bitcoin market and secure appropriate regulatory oversight as a New York trust company makes them ideal for this venture. We are incredibly proud of this agreement and look forward to all that we can achieve together.”

"If all goes to plan, we will see Bitcoin included on the CBOE as soon as Q4 this year early 2018," Tilly said.

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