One of the barriers to the introduction of a bitcoin exchange-traded fund may soon be removed.
The world's largest futures exchange, CME, said Tuesday it's planning to launch bitcoin futures by the end of the year. While not the first to announce plans for bitcoin futures, CME may have a better chance with regulators, some analysts say. And that means the floodgates could soon open for the institutional investors that can't yet invest in bitcoin.
Bitcoin surged to record highs after the CME news, and was trading near $6,570 Wednesday morning, according to CoinDesk.
Two of the largest ETF sellers, ProShares and VanEck, filed in the last few months with the Securities and Exchange Commission to introduce bitcoin ETFs that track bitcoin futures. But VanEck withdrew its application in late September after the SEC said it wouldn't review a filing for a product whose underlying instruments don't exist.
But now that futures could be offered in eight week's time, that may change. CME chief Terry Duffy said he is "confident" the exchange's self-certification process and application for the bitcoin futures will go through. "We've been working with the regulator. … They understand our model very, very well," Duffy said Tuesday on CNBC's "Closing Bell."