Definition ∞ A Bitcoin future is a financial contract obligating parties to transact Bitcoin at a predetermined future date and price. This derivative instrument allows investors to speculate on Bitcoin’s price movements without directly owning the underlying asset. It serves as a tool for hedging against price volatility or for gaining leveraged exposure. Bitcoin futures are traded on regulated exchanges.
Context ∞ Bitcoin futures regularly feature in crypto news, particularly concerning institutional interest and market sentiment. The launch of Bitcoin futures contracts on major exchanges has been a significant step in legitimizing digital assets for traditional finance participants. Their open interest and trading volumes are closely monitored as indicators of market liquidity and investor activity. Regulatory decisions regarding new Bitcoin future products continue to shape market structure and participation.
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