Economy

Bitcoin futures are about to get another big boost By

Bitcoin futures are about to get another big boost By

Mainstream acceptance of what was initially perceived as a shady initiative has buoyed the demand for Bitcoin from traditional investors.

And discount brokerage TD Ameritrade said on Friday it would allow certain clients to trade Cboe bitcoin futures from December 18, pointing to a potential pickup. But two days later Cboe Global Markets said it was launching its own futures contract on December 10, a week before CME.

The decline in bitcoin futures volume had been expected, analysts said, given concerns about the cryptocurrency's underlying volatility. "CME is a way bigger player in futures than Cboe", John Spallanzani, chief macro strategist at CFI Group, told Business Insider.

Bitcoin futures started trading Sunday night at CME Group.'s venue, a week after Chicago rival Cboe Global Markets introduced similar derivatives on the volatile cryptocurrency. But that's a win because CME's contracts are five times more valuable - they are tied to five bitcoins compared with only one with Cboe's futures.

More news: Kimberly Clark Corp (NYSE:KMB) Stake Lessened by Cypress Wealth Advisors LLC

Early volumes were light, and just before publication 354 contracts had changed hands on the most actively traded one-month forward contract.

"We look at the volume, the open interest and the spreads, and we want to make sure that all those conditions are maturing properly", said JB Mackenzie, managing director for futures trading at TD Ameritrade. Thus far, however, the direction is quite clear. The advent of Bitcoin futures and the spectacular growth in the cryptocurrency's value are encouraging exchange-traded fund (ETF) providers to renew their efforts to obtain regulatory approval for vehicles that would track Bitcoin futures directly.

"One of the biggest issues when it comes to investing institutionally in digital assets is banks and larger institutions can't hold an unregulated instrument in their balance sheet, and a futures contract is something they can hold", said Gabor Gurbacs, director of digital-asset strategy at VanEck Associates Corp. However, some risk associated with Bitcoin remain. E*Trade Financial is considering offering bitcoin futures, according to a person familiar with the matter who asked not to be named. Whilst you don't have to hold actual Bitcoin to trade Bitcoin futures, you can use these futures as your average security.

Skeptics point out Bitcoin's value is high due to the restrained supply. We continue to believe in the strong fundamentals of the ether market and hence we believe that this is only a period of consolidation before the next move higher in the ether market. This led a brief rally in the bitcoin spot prices which pushed through the $19,000 for a brief while before correcting lower and it now trades in the mid 18000s region as of this writing. Both the CBOE and CME are poised to expand their trade in Bitcoin futures gradually and cautiously, in order to avoid mass panic should something go wrong.


  • Walt Disney Co (NYSE:DIS) Shares Sold by Cim LLC

    Girard Prns Ltd reported 123,505 shares or 1.84% of all its holdings. 15 were accumulated by Gemmer Asset Limited Liability Com. It is positive, as 77 investors sold DIS shares while 606 reduced holdings. 108 funds opened positions while 638 raised stakes.

    Hennessy Advisors Inc. Sells 3660 Shares of International Business Machines Corporation (IBM)

    Oppenheimer reissued a "hold" rating on shares of International Business Machines in a research report on Wednesday, October 18th. It improved, as 100 investors sold IBM shares while 695 reduced holdings. 91 funds opened positions while 484 raised stakes.
    Sir Mo Farah named BBC Sports Personality of the Year

    Sir Mo Farah named BBC Sports Personality of the Year

    Farah won his third successive world 10,000m gold medal in London in August, despite nearly falling twice late in the race. Sir Mo Farah has pulled off a surprise win to collect the Sports Personality of the Year award for the first time.
  • First legal recreational marijuana licenses sold in California

    First legal recreational marijuana licenses sold in California

    Companies expect that it will take time for society to adjust to marijuana's legality, and for the new market to settle in. Once inside, the business looks like a stylish pharmacy with wood floors and Christmas decorations.
    Recycled SpaceX Dragon Capsule Makes 2nd Delivery to Space Station

    Recycled SpaceX Dragon Capsule Makes 2nd Delivery to Space Station

    For years, SpaceX has landed its rockets and collected them, but this is the first time it's reused a rocket for a NASA mission. The company along with Orbital ATK took over resupply missions to the ISS for NASA after the end of the space shuttle program.
    Prince Harry will marry Meghan Markle in May

    Prince Harry will marry Meghan Markle in May

    Britain's Prince Harry poses with Meghan Markle in the Sunken Garden of Kensington Palace, London, November 27, 2017. Harry, 33, and Markle , 36, announced their engagement late last month after about a year and a half together.
  • Listen to what LeBron James told Lonzo Ball on court

    Listen to what LeBron James told Lonzo Ball on court

    Just be aggressive every single day. (Smiles.) I didn't tell him anything, it's not for everybody. He even said after the game that what he and Ball discussed is none of the media's business.

    Duke Energy Corp (DUK) Shares Sold by Cullen Frost Bankers Inc

    The stock of New Jersey Resources Corporation (NYSE:NJR) earned "Market Perform" rating by Wells Fargo on Wednesday, January 6. The stock of United Technologies Corporation (NYSE:UTX) earned "Hold" rating by Liberum Capital on Tuesday, December 1.
    Donald Trump Jr. and Kellyanne Conway Support Bullied Tennessee Middle Schooler

    Donald Trump Jr. and Kellyanne Conway Support Bullied Tennessee Middle Schooler

    That's why they want the school system to step up and change how kids interact with one another . "Talk to your kids". Keaton says on the video , posted to Facebook by his mother, and later adds: "They make fun of my nose".
  • Gujarat Assembly Election results

    Gujarat Assembly Election results

    Exit polls have exited and it's all over to the results of the Gujarat Assembly Election 2017 on December 18. The hill state recorded a record 75.28 per cent turnout in the November 9 election .
    North Korean Cyber Group Seeks to Woo Bitcoin Job Seekers

    North Korean Cyber Group Seeks to Woo Bitcoin Job Seekers

    Prices for the volatile cryptocurrency surged past $10,000 late last month and have continued to race upward toward $20,000. North Korea is professed to be at the back of Lazarus group, as inclined to think by the Cybersecurity firm SecureWorks.
    Relations lose contact with Palestinian tycoon in Saudi

    Relations lose contact with Palestinian tycoon in Saudi

    He acquired 20 percent of shares of the Arab Bank together with Jordanian and Arab investors to become its chairman in 2012. King Abdullah stayed for a few hours in Riyadh and then left for Istanbul, where he attended the summit.