Topic: when bitcoin futures get traded on CME (Read 189 times)
They are simply betting on the price of bitcoin without any actual bitcoin being bought or sold. It will pump the price in the sense that it brings new exposure for bitcoin but no institutional money is actually being invested in bitcoin directly.
Some people are saying it will not influence the Bitcoin price at all, because no actual bitcoins are being bought or sold for this. The
impact would be the indirect awareness that Bitcoin is actually acknowledged as a derivative on some of the biggest markets. This
might be the gateway for other Bitcoin linked derivatives on other markets. {We are already seeing the NASDAQ making some
announcements like this : https://www.wsj.com/articles/nasdaq-plans-to-launch-bitcoin-futures-in-first-half-2018-1511968313 }
impact would be the indirect awareness that Bitcoin is actually acknowledged as a derivative on some of the biggest markets. This
might be the gateway for other Bitcoin linked derivatives on other markets. {We are already seeing the NASDAQ making some
announcements like this : https://www.wsj.com/articles/nasdaq-plans-to-launch-bitcoin-futures-in-first-half-2018-1511968313 }
This would definitely boost up the price of bitcoin by a lot. Institutional investors' money now pouring into bitcoin is a good thing: wealth would somehow be distributed around and would cause another ATH for sure.
No it won't.
The ones that have money to pour in now are the ones that get richer.
The ones that have only a few savings and can't afford to take a risk, nor they have access to investments will be left behind.
Bitcoin is not a social tool and nothing even remotely close to a socialist one to redistribute wealth across the world.
And the best example for that is if you take a look at the mining.
In the past only the richest, the ones with money could start a bank. Now only the ones with money can afford to buy a miner.
Who earned in the past from fees? Who is earning now?
Maybe bitcoin was designed with something else in mind but right now it is only making rich people richer.
That's a really good question, and I would like to see the opinion of some experienced users in this forum, with knowledge about financial markets. Every time i read something about this subject, people say they it's hard to know what will happen, and how futures trading will relate to bitcoin price. When they are buying futures, they don't need to acquire any bitcoins, so buying or selling does not have a direct impact on the supply and demand of bitcoin. So I really don't understand how it will relate.
Also, the futures market will be regulated, and the bitcoin market is free, so I think they are planning to restrict the BTC futures variations, but they can't do that to the bitcoin price.
Also, the futures market will be regulated, and the bitcoin market is free, so I think they are planning to restrict the BTC futures variations, but they can't do that to the bitcoin price.
1. Of course it is hard to know. If the futures markets would be easy to predict there would be no future markets at all.
2. They do have to own those coins when the they reach the expiry date.
As for the last paragraph , that puzzles me also. Especially with the tarding being stopped on normal markets for holidays, weekend while being on 31
in BTC land
I think the price will go up more than we have now. Since more people will start to invest in it, more people will get interested to buy since it will be regulated.
A positive feedback in the progression of bitcoin as this would develop the advertisements of bitcoin to the world many more large and successful businessman would be willing to invest in bitcoin in which in can arguably increase the demand of bitcoin in all over the world resulting to bitcoin price increase.
This would definitely boost up the price of bitcoin by a lot. Institutional investors' money now pouring into bitcoin is a good thing: wealth would somehow be distributed around and would cause another ATH for sure. NASDAQ would also include bitcoin futures in their platform in June 2018 which means they have thoroughly thought of adding bitcoins into the assets they manage. This would be a big boom in price for the next coming months. I would definitely buy at this price range because of the lined-up confirmed events from the Wall Street side of things.
when bitcoin futures get traded on CME, what will be the effect on the ;price of bitcoin? does it go down or will become less volatile?
That's a really good question, and I would like to see the opinion of some experienced users in this forum, with knowledge about financial markets. Every time i read something about this subject, people say they it's hard to know what will happen, and how futures trading will relate to bitcoin price. When they are buying futures, they don't need to acquire any bitcoins, so buying or selling does not have a direct impact on the supply and demand of bitcoin. So I really don't understand how it will relate.
Also, the futures market will be regulated, and the bitcoin market is free, so I think they are planning to restrict the BTC futures variations, but they can't do that to the bitcoin price.
It'll most likely become more volatile in the short term, since traders (especially large traders) will abuse their ability to manipulate the smaller and newer investors into buying and selling BTC based on emotion.
It's possible that this would eventually weed out the less secure investors, which would be helpful in the long term as it would leave people who are willing to go all in and buy futures being more relevant to BTC's price.
However, it might be a problem if more BTC users start being forced to comply to regulation, which is fairly likely if properly regulated exchanges like NASDAQ are freely available.
It's possible that this would eventually weed out the less secure investors, which would be helpful in the long term as it would leave people who are willing to go all in and buy futures being more relevant to BTC's price.
However, it might be a problem if more BTC users start being forced to comply to regulation, which is fairly likely if properly regulated exchanges like NASDAQ are freely available.
According to news, they plan to start trading by the end of December 2017. Futures for Bitcoin on CME are for institutional investors. And there are some thoughts in the community, that demand is high. So the price can soar to new high records.
Another interesting news, NASDAQ declared that they will start trading Bitcoin futures from the half of 2018.
Another interesting news, NASDAQ declared that they will start trading Bitcoin futures from the half of 2018.
when bitcoin futures get traded on CME, what will be the effect on the ;price of bitcoin? does it go down or will become less volatile?
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