Why Does the United States Allow Bitcoin Futures?
The emergence of Bitcoin futures in the United States has generated significant
The emergence of Bitcoin futures in the United States has generated significant interest in the market, as it allows investors to trade without the need for physical asset support. So why does the United States allow Bitcoin futures? According to data from the Chicago Mercantile Exchange (CME), Bitcoin has been one of the largest derivatives in the market since 2015. However, from a historical perspective, both the CME and Cboe have been providing services to their institutional clients, but this has not hindered the increase in Bitcoin’s price. On the contrary, they have provided an effective tool for hedging volatility.
Due to the collaboration between CME and Cboe, traders are able to buy and sell BTC/USD contracts in a relatively stable manner, which often results in higher returns. However, when Bitcoin prices skyrocket, they may experience lower investment returns, which can be very interesting, especially when Bitcoin experiences significant increases. This means that more investment opportunities may arise. (CryptoNewsFlash)
Why Does the United States Allow Bitcoin Futures?
According to Bitcoinist, the U.S. Securities and Exchange Commission (SEC) stated on Tuesday that it is considering allowing investors to trade Bitcoin futures. According to the Investment Corporation Act, it will allow eligible participants to trade Bitcoin futures contracts without specifying rules and requirements that must comply with federal laws. Therefore, if this bill is passed, it means that the SEC can provide services for cryptocurrencies without acknowledging or denying any wrongdoing.
However, the U.S. Securities and Exchange Commission considers this practice “ineffective” as it could have adverse effects on the price of Bitcoin. Until October 4, 2019, the SEC believed that, due to lack of regulatory clarity, they were unable to directly purchase Bitcoin from investors. Additionally, some analysts are concerned about potential market manipulation, which could lead to clearing risks for exchanges.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/23651/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
eToro Raises $250 Million in Financing at a Valuation of $3.5 Billion: What It Means for the Trading Platform
According to reports, after canceling the plan to list through SPAC at a valuation of $10.4 billion in 2022, the trading platform eToro obtained a financing of $250 million at a va
-
What kernel is used for ETH mining (minimum configuration for ETH mining)
ETH What kernel to use for mining In ETH’s official forum, what kernel to use for ETH mining? According to the description of eth.money, eth is a virtual machine (EVM) used to support the Ethereum blockchain network. Its characteristics include: 1. No need for trust; 2. No need to run nodes; 3. Use hardware devices to protect transaction records, keys, etc. These features are implemented by modifying specific hash values, thereby avoiding loss and attack caused by errors. And ETH adopts a new consensus algorithm that allows users to control their own private keys ETH Mining Minimum ConfigurationEditor’s Note: This article is from Caiyun Blockchain (ID: cybtc_com) and is authorized to be reprinted by Daily Planet Daily Ethereum developers are studying how to deploy smart contracts in ETH2.0 and provide users with secure decentralized mining services. Eth is a new digital currency network based on Proof of work mechanism and time stamp, which can store more than 1 billion bytes…
-
Midsize Banking Alliance Seeks FDIC Insurance Coverage Expansion
On March 20th, the US Midsize Banking Alliance sent a letter to the US Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of Currency, and the Federal Reserve, requesting that the insurance coverage of the Federal Deposit Insurance Corporation (FDIC) be extended to all deposits in the next two years, with the relevant costs borne by the banks themselves. In its letter, the organization stated that expanding insurance coverage could immediately prevent a significant outflow of deposits from smaller banks and prevent more bank closures. The organization said that the recent banking turmoil has caused people to lose confidence in all banks except large banks, and it is necessary to immediately restore market confidence in the entire banking system. The US Midsize Banking Alliance requires the FDIC to provide two-year insurance for all deposits Analysis based on this information:The recent banking turmoil brought on by the pandemic has prompted the Midsize Banking Alliance to take action to…
-
Banks Restricting Customers’ Use of Cryptocurrency: Not in Line with the Spirit of Consumer Protection
According to reports, Diana Baker Taylor, the European policy leader of Circle, stated that it is \”very, very wrong\” for banks to restrict customers from using cryptocurrency. The
-
Changes in EOA address: Revoking Permissions for Authorized Users
According to reports, according to CertiK monitoring, there has been a change in the EOA address 0xf02EE89bcea4B38cE71b10B1f1e7c30b11005791. Please revoke permissions as soon as po
-
Squid Extends DeFi Liquidity to Support Arbitrum
It is reported that the DeFi liquidity protocol Squid based on Axelar now supports Arbitrum. Users can exchange tokens between the Arbitrum network and the mai…
-
Ether POAP OG NFT Series Flooring: A Deep Dive into Its Price Decrease
On April 9th, according to Blur data, the price of the Ether POAP OG NFT series flooring decreased by 65.82% on the 7th, with a current price of 0.649 ETH and a transaction volume
-
The Rise of Web3: Triggering a New Wave of Innovation in Hong Kong’s Financial Technology
On April 14th, the Financial Secretary of Hong Kong, Chen Maobo, stated today at the 2023 Digital Economy Summit that the emergence of Web3 is triggering a new wave of innovation i
-
Former CEO of FTX Provides Technical Advisers to Determine Bail Limit
It is reported that SBF, the former chief executive of FTX, provided the names of two technical advisers to help Lewis Kaplan, the judge who tried his criminal…
-
Digital Asset Investment Products Experience Net Inflow of $56.9 Million: What this Means for Bitcoin and Ethereum Investors
According to reports, according to CoinShares, digital asset investment products had a net inflow of $56.9 million last week. Among them, Bitcoin investment products have a net inf
-
Bitcoin’s Lightning Labs Releases an Update to Enhance Node Management Tool
According to reports, the team of Bitcoin technology startup Lightning Labs is one of the main developers of Bitcoin\’s fast and scalable Lightning Network. It has released an updat
-
ZkSync Ecological DEX Merlin Liquidity Exhaustion
On April 26th, it was reported that Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, tweeted that the liquidity of zkSync ecological DEX Merlin was depleted, and hacke
-
ApeCoin Community Initiates Proposal AIP-222 to Launch Web3 Streaming Platform
According to reports, the ApeCoin community has launched proposal AIP-222 today, aiming to launch a streaming platform similar to YouTube or Twitter that supports token gating. It
-
ImmutableX’s Major Upgrades Expected to Revolutionize Ethereum NFT Layer 2 Expansion Plan
On March 15th, according to official websites and tweets, the Ethereum NFT Layer 2 expansion plan ImmutableX will announce four major updates in the next two months. The official believes that this update is the “largest Token utility upgrade in IMX history, which will permanently change the foundation of IMX.”. It is reported that two of the upgrades will be announced in the early hours of March 21 Beijing time Ethereum NFT Layer 2 Expansion Scheme ImmutableX will announce two major updates on March 21 Analysis based on this information:On March 15th, official websites and tweets announced that the Ethereum NFT Layer 2 Expansion Plan, ImmutableX, is set to unveil four major updates in the next two months. The official announcement calls the updates “the largest Token utility upgrade in IMX history, which will permanently change the foundation of IMX.” This is an exciting update for the Ethereum community, as it is expected to revolutionize the entire NFT world on…
-
Hong Kong’s Regulatory Approach Could Shift the Cryptocurrency Landscape
According to reports, Bernstein, a market analyst, said in a research report released on Monday that the Securities and Futures Commission (SFC) of Hong Kong, …
-
United States District Judge Rejects Class Action Request Against FTX Exchange
It is reported that Jacqueline Scott Corley, the United States District Judge, issued an order rejecting the plaintiff\’s request for five proposed class action…