The first cryptocurrency futures contracts | 10% for @tron-fan-club

The launch of the first cryptocurrency futures contracts by the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) in 2017 was a great milestone in the trading system of the cryptocurrency market. It marked a key moment when traditional financial institutions embraced cryptocurrencies and provided a regulated platform for trading crypto derivatives.

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The introduction of cryptocurrency futures contracts first time by established exchanges like CBOE and CME brought a sense of legitimacy to the cryptocurrency market. It signaled that cryptocurrency like Bitcoin were being recognized as an asset class worthy of inclusion in the traditional financial system. This move helped attract institutional investors who were previously hesitant to participate in the unregulated and volatile cryptocurrency markets. The futures contracts provided a regulated marketplace where investors could speculate on the future price movements of cryptocurrencies. These contracts offered an opportunity for price discovery. F utures contracts provided risk management tools as well. The market participants were allowed to hedge their exposure to the price volatility of cryptocurrencies.

In future contracts liquidity is highly increased. The launch of cryptocurrency futures contracts contributed to increased market liquidity. With the involvement of institutional investors and the availability of regulated trading platforms, the trading volume and liquidity in the cryptocurrency market significantly improved. This liquidity allowed for more efficient price discovery. High liquidity can solve the problem of reducing the impact of large buy or sell orders on the market. The introduction of cryptocurrency futures contracts allowed for greater integration between the traditional financial system and the cryptocurrency market. Asset managers were previously unable or unwilling to directly invest in cryptocurrencies. This integration helped bridge the gap between traditional and digital assets.