Investors will soon get to trade Bitcoin futures on CME, a sign cryptocurrencies are about to go mainstream…
The Chicago Merchant Exchange (CME) announced today (Dec. 1, 2017) that it will begin trading Bitcoin futures on Dec. 18. A futures contract allows an investor to buy or sell a commodity at a predetermined price on a specific future date.
CME is the world's largest futures exchange, and that will help Bitcoin and other cryptocurrencies gain legitimacy with investors. Bitcoin will now be treated similar to other commodities, like precious metals and oil.
It will also allow investors to reduce the risk of owning Bitcoin and could bring more stability to crypto investing….
You Can Hedge Your Bets with Bitcoin Futures
Right now, the only way to profit from Bitcoin is to own it or invest in publicly traded companies that accept Bitcoin payments or mine Bitcoin.
That also means, if prices fall, Bitcoin investors can't limit their losses or make a profit, since there aren't any financial tools to hedge against price changes.
But thanks to CME Bitcoin futures, that will all change on Dec. 18.
If you believe Bitcoin prices have climbed too high too quickly, then you could hedge the risk by shorting a Bitcoin futures contract.
Top 5 Cryptocurrencies to Invest in Today
And CME's Bitcoin futures news is even better for investors who want to profit from Bitcoin without the risk of owning it.
If you think Bitcoin prices are going to rise, you could buy long positions on Bitcoin futures that will gain value as Bitcoin prices go up. That means you can profit without having to worry about buying and securing the digital currency.
As more details unfold, we will keep Money Morning readers informed through our free cryptocurrency Profit Alerts service. It gives you real-time recommendations and price updates on only the best ways to make money now.
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