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.