Cboe, the Chicago Board Options Exchange, recently announced that they were cancelling their Bitcoin futures contracts. This decision comes as a bit of a surprise, as Cboe had only just begun offering the contracts back in December 2017.

The futures contracts were designed to allow investors to bet on the price of Bitcoin in the future. This was seen as a major development in the world of cryptocurrencies, as it represented a move towards mainstream acceptance and legitimacy for these digital assets.

However, the reality of the situation was somewhat different. Trading volumes on the Bitcoin futures contracts were relatively low, indicating that investors were not quite as enthusiastic about the new product as Cboe had hoped. In addition, the price of Bitcoin itself has been struggling in recent months, which may have contributed to decreased interest in the futures contracts.

Ultimately, Cboe has decided to cut their losses and remove the Bitcoin futures contracts from their platform. While this might seem like a setback for the cryptocurrency industry, it's worth noting that other exchanges, such as the Chicago Mercantile Exchange (CME), still offer Bitcoin futures contracts.

There are several possible reasons for Cboe's decision to cancel their Bitcoin futures contracts. One factor may be the increasing regulatory scrutiny surrounding cryptocurrencies and their associated financial products. In recent months, a number of governments and regulatory bodies around the world have moved to crack down on cryptocurrency exchanges and ICOs (Initial Coin Offerings).

This increased regulatory attention may have made Cboe and other exchanges wary of offering cryptocurrency-based products, particularly in light of the high volatility and potential for fraud that is often associated with this emerging asset class.

Another possible reason for Cboe's decision could be competition from other futures exchanges that are offering similar products. While the Bitcoin futures market is still relatively small, there are a number of other exchanges that are vying for a piece of the pie.

For example, the Bakkt exchange, which is backed by the parent company of the New York Stock Exchange (NYSE), is set to launch its own Bitcoin futures contracts later this year. This could prove to be a major challenge for Cboe and other exchanges, as Bakkt's backing by such a well-respected financial institution could lend legitimacy to the Bitcoin futures market.

Overall, Cboe's decision to cancel their Bitcoin futures contracts is a reminder that the cryptocurrency industry is still in its very early stages. While there is certainly potential for growth and development in this space, there are also significant risks and uncertainties that must be carefully navigated.

For investors, this means that it's more important than ever to do their due diligence and carefully consider the risks involved before investing in any cryptocurrency-based products. And for exchanges and other industry players, it means that they must be prepared to adapt to changing market conditions and regulatory environments if they hope to succeed in this volatile and rapidly-evolving industry.