CME plans to launch Bitcoin spot trading

CME Group, the world's largest futures exchange, plans to launch spot trading in bitcoin. CME has held discussions with traders who want to buy and sell cryptocurrencies on regulated markets, three people familiar with the matter said. The plan, which has not yet been finalized, would mark a further intrusion by major Wall Street institutions into the digital asset industry if implemented. CME declined to comment. If CME introduces spot trading in bitcoin while already offering bitcoin futures trading, it would make it easier for investors to engage in basis trading. Basis trading is a common strategy among professional bitcoin traders and a staple in the U.S. Treasury market, involving borrowing money to sell futures and buying the underlying asset, and earning income from the small difference between the two. Most of the Treasury basis trading takes place on CME trading venues. (Financial Times)