Cboe Global Markets, Inc., the first major exchange company to go live with Bitcoin has halted listing new futures for the month of March., Cboe Futures Exchanges recently announced their decision to stop adding new bitcoin futures while they assess and devise a plan on how they would proceed.
The company launched its first bitcoin futures contracts in December 2017. Through bitcoin futures, investors bet on whether the price of the bitcoin will rise or fall. Each month, the contracts expire, and the exchange would need to list new futures constantly to keep its market alive. All active bitcoin futures contracts are still available for trading. However, the last of the remaining will be expiring in June this year.
Cboe’s decision only draws attention to the waning interest in bitcoin. 2017 was the year when the frenzy of retail investors began. At that time, bitcoin was trading around $17,000, and the exchange launched its XBT futures. Soon after, it spiked to $20,000.
Futures gave the investors an opportunity to buy and sell cryptocurrency within a regulated marketplace. Institutional investors who are in favor of it found Cboe as their way to get into the bitcoin marketplace. But then again there is only a slight indication of this happening in the form of crypto derivatives. From that moment on, it has experienced a decline of 80% and is at close to $4,000 just last Monday.
They were not the only exchange to take advantage of the bitcoin frenzy. CME Group, the company’s rival who is based in Chicago, also debuted their own cash-settled bitcoin contracts. Like Cboe, they also used the U.S. dollars denomination.
There are no new announcements of any changes with CME. Historically, CME has experienced more volume with their trading. Their bitcoin futures average 30-day volume is over four times higher than their competitor, Cboe.