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The expectations of Dogecoin futures from the CME might be attributed to the launch of similar products by some major cryptocurrency exchanges.
American global markets firm and the world’s largest financial derivatives exchange CME Group Inc (NASDAQ: CME) will not be listing Dogecoin (DOGE) futures despite a growing speculative frenzy on crypto Twitter. The Block confirmed the exchange will not be launching Dogecoin futures citing people familiar with the situation.
The news about the potential launch of the product was propagated by First Squawk, a global financial news service specializing in the financial markets.
CHICAGO MERCANTILE EXCHANGE SAID TO LAUNCH DOGECOIN FUTURES
— First Squawk (@FirstSquawk) April 18, 2021
The legitimacy of the news was questioned on Twitter as no source was linked to the speculation.
According to the Block’s report, profiled market executives believe the exchange would have given them a heads-up if it was launching such a product. “No one from CME had asked us about it,” one trading executive said. “Usually they give us a look.”
The news headline from First Squawk was one of the many unproven claims that made the rounds over the past weekend as the global cryptocurrency market took a deep plunge, resulting in more than $10 billion liquidations across the board.
Also on Sunday, an unverified Twitter account tagged FXHedgers tweeted this headline.
U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES -SOURCES
— FXHedge (@Fxhedgers) April 18, 2021
Such news contributed to the unhealthy plunge in the crypto market that was originally fueled by a power outage in China’s Xinjiang province, renowned as a major Bitcoin mining region.
Why Would the CME Group Think to Launch Dogecoin Futures?
Dogecoin (DOGE) is gradually becoming a very popular cryptocurrency in today’s growing digital currency ecosystem. Dogecoin was created in 2013 as a Shiba-Inu-themed coin that was essentially aimed at being a joke and for limited use cases.
However, interests from Elon Musk, the Chief Executive Officer of Tesla Inc (NASDAQ: TSLA), and his “promotional tweets” about the DOGE have sparked a wide retail interest in cryptocurrency. For the past months, many investors of whom some are followers of Elon Musk on the Twitter social media platform have a definitive resolution to push the price of the coin, which months ago trades much less than 1 cent, to $1 dollar.
This ambitious target placed on Dogecoin has made it to be embroiled in series of pump and dump schemes. However, the coin surged to a new all-time high of $0.4377 according to data from CoinMarketCap, making it rank as the 6th largest cryptocurrency by market cap today.
The expectations of Dogecoin futures from the CME might be attributed to other cryptocurrency exchanges including Binance, OKEx, and Bitfinex amongst others having launched similar products according to an earlier report by Coinspeaker.
Although the growth of Dogecoin has been relatively stable amid the crypto market dip, the coin likely still has a long way to go before CME and other major exchanges will launch a futures market for it, irrespective of its growing popularity.