Man Group: Soon Crypto Futures „Made in UK“?

The British hedge fund Man Group wants to venture into new business territory with crypto derivatives in the future. This is announced by Managing Director Luke Ellis this week. This follows the CME Group fund from Chicago, which also announced the corresponding business expansion at the end of October. Meanwhile, however, the British financial regulator FCA is again warning against the risks of crypto currencies. In its latest publication, the agency advises consumers not to invest in crypto derivatives.

CME was followed by Man: After the American CME Group had already announced the introduction of futures contracts in the crypto sector at the end of October, the London Man Group is now also entering the business around the so-called crypto futures. This was reported by the news service Reuters on Tuesday, 14 November.

Bitcoin formula Futures are exchange-traded forward transactions

They oblige the buyer to deliver or buy a certain amount of Bitcoin at a certain future date at a fixed price or exchange rate like in this Bitcoin formula review. Futures are considered to be highly risky on the stock exchange because they allow large profits to be made in a very short time while at the same time allowing enormous Bitcoin formula losses to be made.

With the help of 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 be. When it comes to CME futures for Bitcoin, they will be“,

said Luke Ellis, managing director of the fund, which according to its own statements manages assets of more than 100 billion US dollars for its customers, to Reuters on Tuesday.

He also gave crypto currencies credibility against all kinds of criticism. Just because they’re not controlled by governments like analogous currencies, they won’t disqualify and devalue them, Ellis said.

The US-American CME Group had paved the way for crypto currencies in the option business sector. At the end of October, the world’s largest futures exchange had announced that it would expand its business to the crypto sector, firing up current prices. According to CME CEO Terry Duffy, customers will then be able to invest in the new business models and corresponding futures contracts with Bitcoin from mid-December.

Bitcoin trader regulators again with little optimism

While the Bitcoin trader are opening up to crypto currencies, the response of the British authorities is skeptical: The independent financial regulator FCA is warning this week for the third time in recent months about the risks of crypto currencies. In an article on its website on Tuesday, 14 November, the authority also specifically addresses the options and futures transactions around Bitcoin, so-called crypto CFDs (Contracts for Difference).

Although the forward transactions are unobjectionable from a legal point of view, consumers should nevertheless consider the possible high losses.

„Crypto CFDs are an extremely risky, speculative instrument. You should be fully aware of the risks and only then decide whether crypto CFDs are suitable for you“,

is what the article says.

A chance to establish yourself?
However, these less promising tones are unlikely to discourage the Man Group. When the CME Group expands its business to crypto futures in December, its British pedant will soon follow.

This means that crypto currencies and Bitcoin will continue to establish themselves in more conventional financial market sectors. The opening of the Man Group in Great Britain and of CME in the USA shows that the expansion of the established stock exchange business does not stop at crypto currencies.

Rather, it seems possible that these will also establish themselves beyond option and other stock exchange transactions. Ultimately these days it shows up that in the future also large banks accept the alternative means of payment. Several representatives of the „old“ financial world have provided corresponding food for thought in recent weeks. After Goldman Sachs CEO Lloyd Blankfein and the ECB director Benoît C?uré had stressed, one takes Bitcoin seriously, in the last week also the managing director of Citigroup, Michael Corbat, expressed itself positively to the future of crypto currencies.