In an email sent today, Gemini Exchange announced it will be the exchange Cboe takes its Bitcoin price from.
Cboe Futures Exchange Plans to Offer Trading in Bitcoin Futures Beginning 6:00 p.m. EST on Sunday, December 10thGemini is excited to announce that Bitcoin (USD) Futures Contracts will begin trading on the Cboe Futures Exchange, LLC (CFE) starting at 6:00 p.m. EST on Sunday December 10th, 2017 under the ticker symbol “XBT” (contract specifications | fact sheet). Monday, December 11th, will be the first full day of trading, and there will be no trading fees for XBT futures in the month of December.XBT futures are cash-settled contracts based on Gemini’s auction price for bitcoin, denominated in U.S. dollars. XBT futures are specifically designed to allow participants to implement straightforward trading strategies, through settlement to a single, tradeable auction price.
- XBT futures will cash-settle on the third Wednesday of the month
- Final settlement value (XBTS) will reflect the Gemini 4:00 p.m. ET daily bitcoin auction price
- XBT futures will enable investors to take a directional view on the price of bitcoin (both long and short), gain exposure to bitcoin prices, or hedge their existing bitcoin positions
- XBT futures will bring benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing
- CFE is regulated by the Commodity Futures Trading Commission (CFTC)
- Gemini is a New York trust company regulated by the New York Department of Financial Services (NYSDFS)
- Gemini and CFE have cross-market surveillance and information-sharing agreements in place
- Visit our website to learn more about Gemini auctions, accessing our APIs and consuming Gemini market data, and our institutional offering as well as cross-connects to our matching engine. Visit Cboe’s website to learn more about XBT futures.
Onward and upward!Team Gemini
How will this affect the Gemini Exchange?
Gemini.com – known for the last year as the exchange for higher-end investors. Allowing for upwards of $1mln deposits, Gemini also is the second U.S exchange to be fully regulated. In its first two years as an exchange, Gemini has held its place as one of the top exchanges. Currently ranked 16 in volume. With the addition of the Cboe price action, how will the volume change on Gemini? Will Coinbase have a new competitor?
Volume seems poised to pick up and with more action based on Gemini’s indexed price, we can expect to see a higher strain on Gemini’s server and KYC process.
Is Gemini ready?
Gemini has been one of the exchanges known for its slow approval time, with some accounts taking over 2 months to get verified for trading. Their exchange also does not have a working chart, nor a way to view the orderbook for either Bitcoin or Ethereum. Since January of 2017, Gemini has been talking of UX/UI upgrades on the exchange, yet we have not seen anything for over 11 months now. Will they be able to handle the increase in accounts that flock in due to the boost in exchange prestige? They struggle to push out updates and verify KYC information in a due process, will this ‘lag’ hurt the Cboe market?