CME’s announcement this week that it’s entering the Bitcoin space continues to have a positive trickle-down effect, as leading business news service Bloomberg has come out with a piece noting the reasons it sees CME’s move as adding legitimacy to Bitcoin.

Bloomberg acknowledging that Bitcoin is legitimate is key for the space in that it is a nod from the mainstream media, which has historically, and notoriously, been leery of cryptos.

CME changes everything

In the piece about Bitcoin, Bloomberg bluntly states:

“Bitcoin is going legit, for better or worse.”

The story goes on to discuss how the CME Group’s announcement that it would introduce trading in Bitcoin futures by the end of the year was a game changer. The more legitimacy that is added from moves like that of key players in the financial industry, the more chances there are that regulators will provide oversight.

The lack of some kind of regulatory oversight to keep fraud and other activities by bad actors out of the space has long been one of the off-putting issues the mainstream has had about Bitcoin.

So, Bloomberg sees the move by CME, the world’s largest exchange owner, as upping the game for cryptos and bringing some regulatory cover.

Floodgates open

Wall Street players consider CME’s move as opening the flood gates for Institutional money to come into the space. Spencer Bogart, head of research at venture capital firm Blockchain Capital, told Bloomberg:

“A fully regulated derivatives market is opening the floodgates of institutional demand. And for Wall Street, bitcoin is attractive. It’s volatile, it trades 24/7 and the markets are inefficient so they provide nice arbitrage opportunities.”

CME’s move will make Bitcoin futures contracts available, which Bloomberg sees as laying the foundation to shorting Bitcoin easier.

A functioning derivatives market could also give professional traders and investors access to bitcoin without having to deal on unfamiliar venues that may be risky in terms of anti-money laundering and know-your-customer rules. It will allow traders to hedge cash positions in the digital money, which to date has been difficult to do. – Bloomberg

Bringing more investors on board

In making its case for Bitcoin’s legitimacy, Bloomberg spoke to the co-founder of Blocktower Capital Ari Paul. He said that many investors don’t own Bitcoin now because they are afraid of it, or legally they cannot hold it. He told the news service, this could change because in a regulated market like futures, that doesn’t become an issue. He said:

“The ability to easily short allows for market-neutral strategies and makes high-frequency trading much easier. That draws a lot of attention from hedge funds and the traditional finance world.”