Tag Archives: Winklevoss

Cboe is the first to trade with bitcoin futures

Bitcoin has so far been a great deal for many investors in 2017. The price have skyrocketed, and something is about to change right now. Cboe Global Markets, which is the Chicago-based exchange group, launched bitcoin futures on Sunday. That can be a game changer.

Cboe President Chris Concannon is also planning to launch other cryptocurrency`s, and other firms like CME Group has hinted they will launch bitcoin futures very soon, but most of them have a “wait and see” approach.

 

 

As you can see from the chart above, the price is down. The new product will give investors the opportunity to pay a high price for its insurance, and its traders must put a lot of money on the table for their bets.

Bitcoin can be very volatile, and Cboe knows that. Traders are required to have 44% of the bitcoin settlement price set aside for their bet. This is a down-payment for their risk, and margins for the futures are under 10%. VIX margins can get up to 50% because of their risk.

Many are negative to bitcoin, and TD Ameritrade is taking a «wait and see» approach and wont provide the product for clients. Nor will Fidelity, Etrade and Charles Schwab. Two of the largest brokers; JPMorgan and Citigroup didnt start to participate in the market Sunday. Nor did Societe Generale, Interactive Brokers and Wedbush, according to Financial Times.

But anyway, Wall Street are watching the market, and so far there are a number of concerns over Gemini and that is low volumes on the exchange and system outages. Gemini is the cryptocurrency exchange founded by the Winklevoss twins. Cboe is basing its bitoin contracts on pricing on Gemini.

Gemini is still very small and the exchange sees only 1,4% of trading in the entire bitcoin market, and its activity can`t paint an accurate picture of the broader crypto-market. With its low volume and the lack of liquidity, it is also very easy to manipulate.

Cryptocurrency volumes topped as much as $26 billion in a single trading day, but trading firms are under pressure to enhance their technology. The ticker code for bitcoins is XBT and the trading began yesterday, on Sunday, December 10, 2017.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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