Futures are not just for physical assets; they can be traded on financial assets as well.
With Bitcoin futures, the contract will be based on the price of Bitcoin and speculators can place a “bet” on what they believe the price of Bitcoin will be in the future.
In addition, it enables investors to speculate on the price of Bitcoin without actually having to own Bitcoin.
It has two major consequences.
First, while Bitcoin itself remains unregulated, Bitcoin futures can be traded on regulated exchanges. This is good news for those who are concerned about the risks related to the industry’s lack of regulation.
Second, in areas where trading Bitcoin is banned, Bitcoin futures allow investors to still speculate on the price of Bitcoin.