CME announced Tuesday it plans to launch bitcoin futures in the fourth quarter of the year, pending regulatory review.

Bitcoin has surged more than six times in price this year and rose to a record high above $6,330 Tuesday morning after the CME announcement, according to CoinDesk.

The new bitcoin futures contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR). CME launched the reference rate in November 2016.

“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract,” Terry Duffy, CME Group Chairman and Chief Executive Officer, said in a statement.

The leading global exchange for options and futures trading is the latest entrant into the business of offering derivatives for bitcoin, the volatile digital currency which is not listed on a major exchange.

In August, the Chicago Board Options Exchange, the largest U.S. options exchange, said its CBOE Futures Exchange (CFE) plans to offer cash-settled bitcoin futures in the fourth quarter of this year or sometime in early 2018, pending review from the U.S. Commodity Futures Trading Commission. CBOE is working with Gemini Trust, the digital currency exchange founded by brothers Cameron and Tyler Winklevoss, on using Gemini’s market data to create bitcoin derivatives and indexes.

The CFTC did not immediately respond to a CNBC request for comment on the CME news.

This is a breaking news story. Please check back for updates.

Source: Tech CNBC
Bitcoin surges to record after CME announces launch of futures for digital currency