Topic: [2017-12-05] The Bitcoin Futures Race Is On (Read 1418 times)
Lets see how it goes though for the scheduled CBOE/CME bitcoin futures contracts. Everybody is counting that this event will really push bitcoin mainstream, but I really don't know. Although its good to see and that Nasdaq offering their own future contracts as well, at least bitcoin enthusiast has other options besides the 2. Nasdaq though is offering it in Q2 of next year. So it means the positive news coming from this institutions will be carried over up to early 2018. Yes, this is a race that the only winner is the bitcoin community all over the world + those new comers willing to pump the market with their cold cash. I'm in the middle of my study about bitcoin future contracts, of course I will try to get my hands dirty later after getting the positive review's from those who have tried it first. Goodluck on Dec 11.
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The CBOE, CME and Nadsaq are all preparing bitcoin futures trading. CBOE will be the first, beginning bitcoin futures trading on December 10. Futures trading in the cryptocurrency may make a bitcoin ETF a possibility.
The race to get bitcoin futures is now on. The CBOE announced Monday it would begin trading bitcoin futures on Sunday evening at the start of global trading hours. The first full day of trading would be on Monday, Dec. 11. That would beat the CME, which has announced it, too, will begin trading bitcoin futures on Dec. 18, a week later, and the Nasdaq, which is also planning to introduce futures trading in the first half of 2018.
The argument seems to be a simple one. The presence of a futures market will demonstrate that the cryptocurrency is sufficiently "regulated" to allow ETFs to start. The argument may be helped by two features that will be a part of the bitcoin futures: price limits and margin rates.
The CBOE and CME will have margin rates of 30 percent and 35 percent, respectively. In addition to being able to short bitcoin, there's considerable speculation about whether futures will lower or increase the volatility level of bitcoin. The CME, for example, says it will be using price limits that kick in during gains or losses of 7 percent, 13 percent and 20 percent that would slow and in some cases halt trading. In particular, prices will not be allowed to move up or down more than 20 percent from the prior day's close. If that limit is hit, trading can only continue at or within the +/- 20 percent limit for the remainder of the trading session. More here...
The race to get bitcoin futures is now on. The CBOE announced Monday it would begin trading bitcoin futures on Sunday evening at the start of global trading hours. The first full day of trading would be on Monday, Dec. 11. That would beat the CME, which has announced it, too, will begin trading bitcoin futures on Dec. 18, a week later, and the Nasdaq, which is also planning to introduce futures trading in the first half of 2018.
The argument seems to be a simple one. The presence of a futures market will demonstrate that the cryptocurrency is sufficiently "regulated" to allow ETFs to start. The argument may be helped by two features that will be a part of the bitcoin futures: price limits and margin rates.
The CBOE and CME will have margin rates of 30 percent and 35 percent, respectively. In addition to being able to short bitcoin, there's considerable speculation about whether futures will lower or increase the volatility level of bitcoin. The CME, for example, says it will be using price limits that kick in during gains or losses of 7 percent, 13 percent and 20 percent that would slow and in some cases halt trading. In particular, prices will not be allowed to move up or down more than 20 percent from the prior day's close. If that limit is hit, trading can only continue at or within the +/- 20 percent limit for the remainder of the trading session. More here...
The race is on for the introduction of Futures Contracts to the market and it seems that the less-publicized CBOE is moving ahead to the much-touted CME offering. Well, right now, there is an excitement that anybody in the Bitcoin community can easily feel in the advent of the futures for Bitcoin as part of its legitimization movement and in my estimate this is just the start as we have just barely scratched the surface. some are guessing that the futures can control the growth of Bitcoin but I believe that this is something that can only be confirmed once the data is already published in the open. What is sure is that the future for Bitcoin is getting brighter with these finance institutions now joining the Bitcoin party!
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