Man Group: Soon Crypto-Futures "Made in UK"?

In the future, the British hedge fund Man Group intends to take the plunge into new business for crypto derivatives. This announces CEO Luke Ellis this week. This follows the CME Group from Chicago, which also announced the corresponding business expansion at the end of October. Meanwhile, the UK's financial regulator FCA again warns against the risks of cryptocurrencies. In its most recent publication, the Authority strongly advises consumers not to invest in crypto derivatives.

On CME followed Man: After the end of October, the American CME Group had let sound the introduction of forwarding contracts in the crypto sector, now also the London Man Group enters the business around the so-called crypto futures. This reported the news service Reuters on Tuesday, the 14.11.

Futures are exchange-traded forward contracts. They require the buyer to deliver or buy a certain amount of Bitcoin at a specific future time at a specified price or exchange rate. Futures are considered to be highly risky on the stock market, as they can generate large profits in no time at the same time as enormous losses.

With the help of the Man Group, such investment opportunities will soon be available in the UK as well:

"Digital currencies are an interesting concept. They are not yet part of our investment universe - but they could. When it comes to CMC futures for Bitcoin, they will become it, "

said Luke Ellis, managing director of the fund, who claims to have assets of more than $ 100 billion for his clients, told Reuters on Tuesday.

Furthermore, he spoke against cryptocurrencies against many criticisms, credibility. Just because they are not controlled by governments like analogous currencies would not disqualify and devalue them, Ellis said.

The US CME Group paved the way for cryptocurrencies in the sector of options. At the end of October, the world's largest derivatives exchange announced that it would expand its business to the crypto sector, fueling current prices. According to CME CEO Terry Duffy, customers should be able to invest in the new business models and corresponding futures contracts with Bitcoin from mid-December.

 British Financial Supervision once again with little optimism

As the financial industry opens to cryptocurrency, the UK authorities' response is sceptical. For example, the independent financial regulator FCA is warning of the risks of cryptocurrencies for the third time in the last few months this week. In addition, in an article published on its website on Tuesday, Nov. 14, the agency also specifically addresses the option and forward transactions around Bitcoin, so-called crypto-CFDs (Contracts for Difference).

While futures are safe from the legal framework, consumers should consider the possible high losses.

"Crypto-CFDs are an extremely risky, speculative tool. You should be fully aware of the risks and then decide if crypto-CFDs are right for you. "

it says in the article.

A chance to establish yourself?

However, these few hopeful sounds will most likely not deter the Man Group. When the CME Group expands its business to include crypto-futures in December, it will soon be followed by its British pedant.

Thus, cryptocurrencies and Bitcoin continue to establish themselves in more conventional financial industry market sectors. The opening of the Man Group in the UK and CME in the US shows that the expansion of the established business of established investment banks in cryptocurrencies is not halting.

Rather, it seems possible that these also establish themselves beyond options and other stock market transactions. Ultimately, it seems possible these days that in the future even large banks accept the alternative means of payment. Corresponding food for thought had been provided in recent weeks by several representatives of the "old" financial world. After Goldman Sachs CEO Lloyd Blankfein and ECB director, Benoît Cœuré had emphasized that Bitcoin was taken seriously, Citigroup CEO Michael Corbat also commented positively on the future of cryptocurrency last week.