First of all this is very important new, first time in the history of the Bitcoin, future contract can now be exchanged on the regulated market on Chicago Stock Exchange. So, let\'s see how would this influence Bitcoin and entire cryptocurrencies market.
How do futures contract work
Future contract are financial instrument that allows you to put some kind of bet on the performance of any sort of value and try to predict its future trend. It can be used on any kind of title and the eventual winnings of the \'bet\' allows to speculate the effect on a given market. Future contract, of course are giving you some kind of reward or benefits when the bet is won and mitigating losses when the bet is lost. The main characteristic of futures is that you don\'t really need to posses Bitcoin if you want to bet on their value. But also if investor possesses Bitcoin but want to mitigate the losses of a possible crash in the value of Bitcoin he can bet against the trend of Bitcoin, avoiding any losses caused by a decrease in market value and the price of Bitcoin.
The fist future contracts gave Bitcoin value between $15000 and $18000 which means that investor who bought futures contract expect the price to remain stable or to grow. The value taken into the consideration by the Chicago Stock Exchange is take form the most important cryptocurrencies exchanged Gemini, which also includes Ethereum and Bitcoin Cash among other digital currencies.
Not only Chicago Stock Exchange is interested in this kind of business. Moscow Stock Exchange is also building a cryptocurrency trading infrastructure. This could not mean anything serious because the relation between Russian governments and cryptocurrencies at all is very fluctuating. The interest by governments and stock exchanges around the world is beginning to be seriously taken into consideration but first at all, all of these governments need to regulate Bitcoin and other cryptocurrencies.