"We are the price mechanism for the contracts when they settle," Winklevoss said.

The futures exchange needs a cash market to reference for the final settlement price of the bitcoin futures contract expiry. The twins own one of the many exchanges that trade crypto around the world.
 
I don't think what he said had any meaning, because the CBOE has no real settlement connection with the crypto exchanges. Someone correct me if I am wrong.

Stymie said:
The twins own one of the many exchanges that trade crypto around the world.
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I don't think this is true. They tried to start an ETF, but didn't get the permit. What exchange do you think they own?
 
ET180 said:
The apparently own an exchange called Gemini.
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Oh yes, I forgot about that. It actually seems to be operational, although nobody ever mentions that they have money there. Also their price is $550 higher than Bitstamp's.
 
Stymie said:
The futures exchange needs a cash market to reference for the final settlement price of the bitcoin futures contract expiry. The twins own one of the many exchanges that trade crypto around the world.
More...

Thanks. I see now it's listed in the contract specifications.

http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures/contract-specifications

Description:
Cboe Bitcoin (USD) futures are cash-settled futures contracts that are based on the Gemini auction price for bitcoin in U.S. dollars.
 
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