Thank you.
This is some kind of explanation I was looking for as I did not understand what effect this could have to Bitcoin.
Really some big news!
Well, considering that CME makes probably more than $1Bn in profits alone, it is kinda of a big deal.
Yes, this is a big, big deal.
To me the key quote from the press release is the following:
"The availability of robust reference prices with independent oversight is key to the professionalization of bitcoin trading and further establishes digital assets as a new asset class," said Dr. Timo Schlaefer, Crypto Facilities. "We are excited to work with CME Group on the construction and implementation of this reference rate and index."
As I said earlier, this will lend a ton of legitimacy to Bitcoin being a viable trading commodity to big financial players, which is basically what the quote is saying. Up until now, in the major financial world, BTC has been thought of as the cute thing people trade while sitting in their mom's basements, but now being thought of as "a new asset class" opens up a lot of new doors and opportunities. Think of these index additions much the same way you would of a celebrity endorsement of a product, but in this case it is a financial heavyweight endorsement.
Now this doesn't mean BTC will skyrocket and be traded everywhere overnight, but it is certainly a major step forward in that direction. Once you start to get the option to choose BTC as one of your Fidelity or Vanguard retirement fund picks, then you will know we have arrived.
