The newly launched one-month bitcoin futures on the Cboe Futures Exchange were slightly tepid, with prices generally steady and volumes about a third of those seen on Monday.
With CBOE's launch, Bitcoin rose past $15,000 - as of the time of writing, it now sits above $17,000. Bitcoin earlier hit a record high of $17,270. Next week, on 18 December, CME Group, a derivatives marketplace, will launch bitcoin futures contracts. Cryptocurrency news can break at 3 am NY time just as easily as 3 pm, and "pajama traders" need real-time information. Taylor believes that based on his charts, Bitcoin has not yet peaked, but as soon as the "upmove ends, it will crash".
"There's no place for Bitcoin in a multi-asset portfolio given the very high volatility", said Robeco Chief Investment Officer Lukas Daalder. When traders look to exploit the difference between where they feel where prices will be over time and where the futures contract is priced - arbitrage, or trading against the forward bias in FX markets - volatility tends to be dampened in the spot market. While modest when compared with Bitcoin's 270 percent increase over the past three months and 230 percent rise in the last two months, those levels still indicated a lack of large "short" positions betting against Bitcoin. "Keeping close tabs on social media and forums, futures positioning and other indicators can make a huge difference between making a proactive move or a reactionary one". "But just because it doesn't happen on day one doesn't mean it won't in the future". Bitcoin futures were up over 20 percent leading into the USA market open. As of early afternoon trading in NY, 3,951 one-month contracts had changed hands, meaning around $73.1 million had been notionally traded.
Bitcoin Futures Surge in Debut
Cryptocurrency enthusiasts took this as a signal of mainstream acceptance of the asset class, and bitcoin closed the day (according to historical data provided by www.coinmarketcap.com ) at $6,468.40.
Futures markets involve hedgers and speculators. That's in line with Monday's gain of 9.6 percent and minor in comparison to last Thursday's 20 percent surge. "There was that kind of confidence in CBOE's systems to bring this contract up".
Bitcoin was set up in 2008 by an individual or group calling themselves Satoshi Nakamoto, and was the first digital currency to successfully use cryptography to keep transactions secure and hidden. Think about never having traded this contract in a lit futures market before.
Bitcoin, a virtual currency, is a commodity unlike any the Commission has dealt with in the past...[a] s a result, we have had extensive discussions with the exchanges regarding the proposed contracts, and CME, CFE and Cantor have agreed to significant enhancements to protect customers and maintain orderly markets.Even household names including Goldman Sachs have said they plan to clear Bitcoin futures on behalf of some clients. Heightened excitement ahead of the launch of the Cboe futures gave an extra kick to the cryptocurrency's scorching run this year.
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The five-seat body is now controlled by a Republican majority, and Pai's plans are expected to be approved with few issues. Last week, more than a couple of dozen Democratic senators called for a delay of the FCC vote .