Bitcoin Futures Contracts Pose Little Credit Risk To Cboe, CME: Moody’s

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Bitcoin Futures Contracts Pose Little Credit Risk To Cboe, CME: Moody’s
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Bitcoin futures contracts have been available from Cboe Global Markets and CME Group since December, and so far, investors seem to be hesitant to add them to their portfolios. Between the wild swings in the bitcoin price and skepticism about whether cryptocurrencies are here to stay, it only makes sense that investors would hesitate on one of the earliest forms of traditional investment in them.

So is there any risk associated with selling bitcoin futures contracts? Analysts with Moody’s Investors Service see only “moderate” risk at the current low volumes. They note that volumes of bitcoin futures contracts have remained low. CME Group management corroborated this earlier this month, saying that it’s OK if it takes a while for adoption to become more widespread.

Bitcoin futures contracts carry the cryptocurrency into a more mainstream method of investing. They enable investors to bet on the bitcoin price and hedge any positions they might ho