Probable effects of upcoming CME and NASDAQ Bitcoin futures contracts?

uslfd

full member

Activity: 294

Merit: 100

Quote from: BTRIC on December 05, 2017, 04:00:08 PM

Hi All,

As I'm sure most of you know, starting next week the CME Group and NASDAQ will be introducing Bitcoin derived futures contracts.

A very important consideration with respect to these futures is that they are cash settled, not settled in Bitcoin.

I've read a fair amount from the "traditional finance" media regarding this development. A brief read is this article:

Bitcoin Futures And The Need For Control
http://www.zerohedge.com/news/2017-12-05/bitcoin-futures-and-need-control

Quote

So, don’t think for a minute that the CME or the CBOE are implementing Bitcoin futures for our benefit or simply because they want a cut of the action. No, they are doing so because they see the existential threat to their business and are moving to defend it by becoming part of the action."

My question of the Bitcoin community is, how do you think these futures will impact the Bitcoin market?

If anyone has any good articles they've read that address this side of the issue, if you could post a link to them, that would be much appreciated.

Thanks!

I have read quite a lot of different analyses on this topic, you could google it, there are loads:

I think
1. At this price point, CME / CBOE will push price upwards because a lot of people and funds do not have exposure to bitcoin and they would definitely want some via the futures market
2. However once BTC reaches some new highs on futures push, there could be one big bloodbath caused by big FUD where BTC price could enter a 50% correction due to futures market delevergaing.

Beerwizzard

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Activity: 924

Merit: 148

Quote from: BTRIC on December 05, 2017, 04:00:08 PM

A very important consideration with respect to these futures is that they are cash settled, not settled in Bitcoin.

I'm not a professional financer but if those futures are in fiat then it is pretty bad. It is coming out as a new kind of gambling for pro investors but at the same time this issue won't increase the demand for bitcoin. As we know the cryptomarket is very vilatile and sensitive (kust remember the latest issues with the exchanges) so we are just risking to get a bunch of professional shitters playing with the market and distabilizing it from time to time while not being the part of this market and not doing anything positive for it.

BTRIC

copper member

Activity: 98

Merit: 12

BTRIC: Innovate. Institute. Labs.

Hi All,

As I'm sure most of you know, starting next week the CME Group and NASDAQ will be introducing Bitcoin derived futures contracts.

A very important consideration with respect to these futures is that they are cash settled, not settled in Bitcoin.

I've read a fair amount from the "traditional finance" media regarding this development. A brief read is this article:

Bitcoin Futures And The Need For Control
http://www.zerohedge.com/news/2017-12-05/bitcoin-futures-and-need-control

Quote

So, don’t think for a minute that the CME or the CBOE are implementing Bitcoin futures for our benefit or simply because they want a cut of the action. No, they are doing so because they see the existential threat to their business and are moving to defend it by becoming part of the action."

My question of the Bitcoin community is, how do you think these futures will impact the Bitcoin market?

If anyone has any good articles they've read that address this side of the issue, if you could post a link to them, that would be much appreciated.

Thanks!

Topic: Probable effects of upcoming CME and NASDAQ Bitcoin futures contracts? (Read 233 times)