Bitcoin Futures

Bitcoin Storms Wallstreet: Futures Now Available Through CBOE

So it finally happened. Bitcoin has finally gained mainstream legitimacy as an asset class through futures contracts offered by Chicago, USA – based  CBOE (Chicago Board Options Exchange). Bitcoin futures trading went live on Sunday at 6 pm Chicago time (around 2 am Monday morning in our time zone). CME and Nasdaq inc will be launching their own Bitcoin derivatives on the 18th and the second quarter of 2018 respectively.

 

Following CBOE’s announcement, that it would launch it’s futures contracts, giving investors access to Bitcoin’s price without directly investing in the cryptocurrency itself, Bitcoin through a 48-hour ATH party from December 6th. Bitcoin’s price leapt from a week-long meander around the $10,000- $11,000 mark to $12,000 then totally bypassing $13,000  and rocketing about $14,000 within an hour. Just when we thought Bitcoin would enter a brief correction phase, it spent the next day and a half logging new all-time high’s, ultimately surging up to$17,000 on some exchanges.

 

Bitcoin experienced a $1,200 tumble and continued to slightly below $14,000 on Friday however, on fears that CBOE’s Bitcoin futures launch may not be a great thing after all, due to the risk of big gun traders using futures contracts to short Bitcoin into submission.  The Motley Fool‘s Sean Williams and Mad Money’s Jim Cramer predicted a financial bloodbath on December 11, when Wallstreet was back in the office, that would ‘kill’ Bitcoin. Things went a little differently though.

 

Such was the enthusiasm from mainstream traders that Bitcoin recovered from a weekend lull and rose to $15,700. In fact, CBOE’s Bitcoin futures launch went so well, that a spike in activity triggered two halts in trading to cool the market.

 

Day 2 confirms market excitement about an exchange-listed and regulated product that allows one to bet on Bitcoin’s price swings without actually owning any, with prices at $17,380 at press time. Signs indicate that BTC might be getting ready to make a play for $20,000.

 

What happens next? Theoretically, Bitcoin’s price may experience less volatility in the long run, with institutions scrambling for approval to launch various Bitcoin derivatives. This also means more liquidity for Bitcoin. A fact that has to lead many to make six-figure predictions for 2018.

 

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Shane Maguire

Bitcoin enthusiast, have been trading and following Bitcoin since 2012. Director at 45ive Media, a small digital marketing agency based in Margate, South Africa.

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