The Chicago Board Options Exchange (CBOE), the largest U.S. options exchange, which in late 2017 had started offering Bitcoin futures, announced that it will not add a new Bitcoin (BTC) futures market in March this year. However, the existing listed futures, XBTM19, remain in operation and will expire in the month of June. They also pointed out that the exchange is reviewing its vision on Cryptocurrency derivatives trading.
The official announcement said that CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019. CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading. Currently listed XBT futures contracts remain available for trading. Since the Chicago Board Options Exchange introduced Bitcoin futures trading back in December 2017, future contracts provide investors exposure to the underlying asset. In this case Bitcoin without the requirement to own any, instead, investors purchase contracts that track the underlying price of the asset and contemplate on whether the contract price will rise or reduce by its expiration date. However, in the case of CBOE Bitcoin futures market, the different is then settled in U.S. dollars.
Apart from this, reports stated that the Bitcoin price could be headed for another large selloff, while analysts reported that key technical indicators like the Moving Average Convergence Divergence had been moving downward since mid-February.