The Chicago Board Options Exchange (CBOE) has announced that its planned bitcoin futures product will begin trading on december 10. The news comes after CME group announced last week that it would launch bitcoin futures on December 18.
Bitcoin's price has soared tenfold this year, but many market participants warn of a bubble as it topped $11,000 for the first time last week.
A federal regulator gave the go ahead on Friday to the CME Group to start trading bitcoin futures later this month, the first time the digital currency will be traded on a Wall Street exchange and subject to federal oversight. In a press release today, CBOE announced it will offer the service to traders beginning Sunday, December 10 at 5 pm CT.
Bitcoin's price levels have mostly displayed incremental gains within the $11,000 price range.
"Given the unprecedented interest in bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure". "We are committed to encouraging fairness and liquidity in bitcoin markets". But there are a couple of differences between bitcoin futures trading at the two exchanges.
CBOE to launch bitcoin futures trading Sunday
The exchange announced Friday that it would begin offering bitcoin futures trading, but it didn't specify a start date.
The price of bitcoin futures will be based on the price the digital currency is going for on four major bitcoin exchanges - Bitstamp, GDAX, itBit and Kraken. Bitstamp, GDAX, itBit and Kraken are the constituent exchanges that now contribute the pricing data for calculating the BRR.
On the US -based Bitfinex exchange, fell to $11,131, down $31, or 0.28% after hitting an all-time high of $11,843 earlier in the session.
The announcement from the Commodity Futures Trading Commission (CFTC) that it will allow the futures to be traded was seen as a watershed moment for the currency.