CME Group, world’s largest options and futures marketplace, announced its intention to launch of Bitcoin futures in Q4’2017. The firm is waiting for regulatory green light to move forward.

The contract will be cash-based and will use the CME CF Bitcoin Reference Rate as reference base. The bitcoin futures will be subject to the same CME rules as the other ones.

This announcement follows the rocketing price of bitcoin, reaching USD 6,400 today. For the cryptocurrency, its use in future contract by the largest player in the industry is a significant step towards a stronger credibility.

On the matter, Terry Duffy, CME Group Chairman and CEO, declared, “given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract. As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”

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By Jean Leguy, Research Analyst at Holland FinTech