CME Exec Says Not to Blame Bitcoin Futures for Recent Bear Market
The managing director and global head of equity products and alternative investments of CME Group, Tim McCourt has made a statement that bitcoin futures are not to be blamed for the plummeting prices in the cryptocurrency market this year.
Talking at the Consensus Singapore 2018 event, during a panel on crypto derivatives trading, McCourt told the audience that according to his honest opinion, the introduction of bitcoin futures products are not the reason for the recent market downturn. He added that they are just a small part of the market.
"out of the 40 percent of bitcoin futures trading on CME that's outside the U.S., 21 percent is coming from Asia"
McCourt said that this fact is engrossing, bitcoin futures market has been growing, especially with volumes coming from Asia markets, on the contrary. He further explained that trading activities in the hours before the U.S. market begins to have a major influence on the price of bitcoin futures on CME. He made a statement that out of the 40 percent of bitcoin futures trading on CME that's outside the U.S., 21 percent is coming from Asia.
According to media reports, DRW founder, Don Wilson also said that bitcoin derivatives trading volume from Asia is approaching that of the U.S., referencing data from both CME and CBOE.
McCourt went on to say that in response to demand from market participants who want to trade crypto derivatives on a regulated exchange, CME rolled out its bitcoin futures products. He added that they want a regulated exchange to provide that vehicle with risk management to elevate their comfort level.
Phillip Gillespie was also on the panel with McCourt. CEO of B2C2 Japan, Phillip Gillespie, said that with bigger exchanges moving into crypto derivatives and spot trading, regulators are also taking the space much more seriously now. It can be considered as a shift that may eventually open the doors to the wider institutional adoption of crypto trading.
"The trading volume of bitcoin derivative products in Japan had grown from $2 million in 2014 to a whopping $543 billion in 2017, as per media reports early this year."
Gillespie talked about recent moves by Japan's Financial Services Agency to inspect security and anti-money-laundering measures at exchanges in the country. With regulators giving clearer rules on various aspects of cryptocurrency trading, institutional crypto trading is on the way, according to his views.
The trading volume of bitcoin derivative products in Japan had grown from $2 million in 2014 to a whopping $543 billion in 2017, as per media reports early this year.
Gillespie commented that they are starting to see regulators are coming in and institutions will be ready to come back as regulators are transforming the space for sophisticated investors with comparatively rigid hiring structure and KYC measures.