Bitcoin

It’s no secret that the Chicago Mercantile Exchange (CME), the largest commodities market in the US, has confirmed it will add Bitcoin futures trading in the fourth quarter of 2017. Bitcoin price jumped substantially on the news, reaching all-time highs over $7,500.

In order to determine pricing for the exchange, the CME has created the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the US dollar price of Bitcoin. This price is set through four exchanges, Bitstamp, GDAX, itBit and Kraken.

Cointelegraph sat down with Bitstamp CEO Nejc Kodrič in order to understand more of what the addition of Bitcoin futures will mean for the cryptocurrency market as a whole.

Cointelegraph: Thanks for taking the time to help us think through this major step for Bitcoin. First, do you see Bitcoin more as a commodity or currency, and why?

Kodrič: While Bitcoin has some characteristics of currency, it can be used as a medium of exchange and you can facilitate transactions with it – it is also trading like a commodity.

CT: Why is such a major step for Bitcoin being added to the CME?

K: It’s definitely another significant step, perhaps the most significant step to date in professionalizing the asset class. CME’s launch of Bitcoin futures will also pave the way for more crypto-related financial products.

CT: How is Bitstamp involved in this addition?

K: Bitstamp is one of four exchanges and trading platforms that will be providing pricing data for the BRR through working together with Crypto Facilities Ltd. We’ve actually been providing data for more than a year as they studied the feasibility of creating the Bitcoin futures market.

CT: Why is this role critical to the overall CME addition process?

K: Exchanges providing the pricing data need to have solid systems to detect and prevent any potential market manipulation. It’s essential that we ensure that all data provided does not include any forms of manipulation that could affect the index. We’re proud that we’ve earned the trust of the industry and were chosen to be a part of the new Bitcoin futures market.

CT: How do you see this latest news regarding the CME affecting Bitcoin, in terms of price?

K: No comment.

Source from: https://cointelegraph.com.

Web-based digital currency bitcoin hit its highest levels in almost three years on Friday, extending gains since India sparked a cash shortage by removing high-denomination bank notes from circulation a month ago.

Bitcoin was trading as high as $774 on the New York-based itBit exchange, up almost 1 percent on the day and the highest since February 2014, having climbed almost 9 percent in the past month.

Bitcoin is a cash alternative that can be used for moving money across the globe quickly and anonymously with no need for a central authority to process transactions. It has climbed around 80 percent so far this year, far exceeding its 35 percent rise in 2015.