It’s becoming a little more common for exchanges to have the government’s blessing to trade BTC derivatives. The Bitnomial Exchange is the latest member of the mostly private group for trading BTC derivatives. It has received an order of designation from the Commodity Futures Trading Commission of the United States. This commission grants the status that allows a firm to be a designated contract market. It joins Bakkt, CME, CBOE and LegerX among the few entities that are able to trade derivatives of cryptocurrencies.

The United States Securities and Exchange Commission continues to reject Bitcoin ETFs. However, the Commodity Futures Trading Commission is allowing a few exchanges to offer those products. They are based physically off of Bitcoin. The idea behind them is that the physical basis will drive the demand. The supply of the ETFs is limited, so traders will receive actual Bitcoin when their contracts close. They will not get United States dollars upon the close of their contracts.

Bitnomial is a company based in Chicago, Illinois. This means that traders in the United States can do their trades in public. The derivatives products available from the other cryptocurrency exchanges are basically prohibited unless the trader is using a virtual private network (VPN). Even with a VPN, the trading process of ETFs does not always work. However, having a public and SEC-approved place to do the trading means that there is an additional option for traders to make their bets on the future value of Bitcoin. They can do this in full daylight and within the law.

As of the morning of April 21, the value of Bitcoin continues to hover around the $6,800 mark. It has hovered there for a while. It lost about 2 percent of its value, as did the other major cryptocurrencies over the past 24 hours. Investors continue to be cautious with all of the market volatility. The COVID-19 pandemic has caused a wild ride on all of the worldwide markets. The investors who are looking for security are having a hard time of finding it in any type of investment.