Dec. 1 (UPI) -- Two major exchanges can begin trading in bitcoin futures, the U.S. Commodity Futures Trading Commission announced on Friday.
The commission warned, though, that the value of the virtual currency, unattached to any government production of currency, is speculative and very volatile.
The Chicago Mercantile Exchange and the CBOE Futures Exchange, both based in Chicago, were given approval to trade in bitcoin futures. The smaller Cantor Exchange received the same approval. The CME announced that its trading will begin on Dec. 18.
"Bitcoin, a virtual currency, is a commodity unlike any the commission has dealt with in the past. As a result, we have had extensive discussions with the exchanges regarding the proposed contracts, and CME, CFE and Cantor have agreed to significant enhancements to protect customers and maintain orderly markets," said Christopher Giancarlo CFTC chairman. "In working with the commission, CME, CFE and Cantor have set an appropriate standard for oversight over these bitcoin contracts given the CFTC's limited statutory ability to oversee the cash market for bitcoin."
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A bitcoin's value has gained $1,000 each in the past 24 hours. After the CFTC announcement, it increased $515 and is currently trading at about $10,500 each. It broke the $10,000 threshold on Thursday.
The futures trading on exchanges will allow traders to invest in predictions of whether a bitcoin's value will rise or fall, similar to current commodity markets in oil, gold and other raw materials. Skeptics believe bitcoin trading is a bubble that eventually will crash in value and interest. The bitcoin also remains associated with money laundering and other illegal actions.
