Litecoin News of the Day
The CME Group Inc (NASDAQ: CME) deciding to carry Bitcoin futures is perhaps the biggest Bitcoin news this quarter. In fact, it will be remembered as a major turning point for cryptocurrencies.
For this reason, today’s Litecoin news update will focus on the CME decision. After all, Litecoin lives in a Bitcoin world…there’s no use pretending otherwise…
Let’s start with what happened.
What exactly is CME doing? In a nutshell, the company is adding a Bitcoin futures contract to its derivative market. Here’s a statement from Terry Duffer, CME Group Chairman and CEO:
“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract.”
This contract is almost identical to crude oil and gold futures. You’ll probably start to see a “BTC Futures” ticker at the top of whatever trading platform you use, given that the CME runs the biggest derivatives market in the world.
But here’s the most important part…
CME is essentially giving Wall Street the all-clear signal to invest in cryptocurrencies. Bitcoin is the first, to be sure, because it is the market leader, but do you really think that’s where it’ll end?
Of course not! Hedge fund titan Mark Novogratz is already dabbling in altcoins. He says that roughly 10% of his billion-dollar fortune is invested in cryptocurrencies.
Given that he operates with less oversight than banks, he was understandably ahead of the curve. But now that CME and regulators are hopping on the crypto bandwagon, I’m guessing the rest of Wall Street will be close behind…
All this is by way of saying that Litecoin could see similar gains in the coming months. Once the regulatory lines are clearly drawn, there’s nothing to prevent CME from adding LTC, XRP, ETH, and all the rest.
Daily Litecoin Chart
The Litecoin to USD exchange rate is currently down roughly 3.78% to $52.82. However, I don’t find this slump depressing, because the underlying cause could benefit our long-run Litecoin price forecast.