Cboe Halts Listing of Bitcoin Futures XBT


The Chicago Board Options Exchange (CBOE) is currently re-evaluating its approach to trading cryptocurrencies, clarifying that it will not be launching a new Bitcoin futures market this month.

As the firm stated in an announcement published March 14:

CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019. CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading.”

As CBOE noted, while all of its currently listed futures will remain available for trading, XBTM19 futures is set to expire in June.

CBOE initially rolled out support for Bitcoin futures trading in December 2017, with its rival the Chicago Mercantile Exchange (CME) following thereafter.

Futures contracts enable investors to enter the crypto markets without actually owning any digital assets by allowing them to purchase contracts to monitor the cryptocurrency’s price and speculate whether or not the price of the contract will decline or escalate by the time it expires. As for CBOE Bitcoin futures market, the difference is paid out in U.S. dollars.

On March 13, Bloomberg has published a report positing that Bitcoin’s price could potentially be heading towards another massive selloff. According to several pundits, since mid-February, a number of key technical indicators including the Moving Average Convergence Divergence had been marginally dropping.

As Bloomberg analyst Mike McGlone surmised:

The entire industry is ripe to resume a path to lower prices. Conditions are akin to November [2018], just prior to the collapse