Bitcoin up $12000 as futures move closer to reality

Bitcoin up $12000 as futures move closer to reality

Cboe Global Markets Inc. said Monday it will start trading bitcoin futures on December 10, after receiving the go ahead last week from USA futures regulator Commodity Futures Trading Commission (CFTC). While this certainly adds legitimacy to bitcoin as an investable asset and could help stabilize the volatile digital currency, it also allows traders to make speculative bets on the price of bitcoin, in both the upward and downward directions.

CME's bitcoin futures contract launches december 18, available for trading on the CME Globex electronic trading platform, the world's biggest derivatives exchange said on Friday.

The Cboe contact will be priced off of an auction on the Gemini cryptocurrency exchange, while CME will derive its price from the CME CF Bitcoin Reference Rate, which uses four exchanges: Kraken, itBit, GDAX and Bitstamp.

Dr. Garrick Hileman, a research fellow at the Cambridge Judge Business School and founder of economic news website MacroDigest, told Radio Sputnik that the increased popularity of Bitcoin has caused concern among regulators about how the cryptocurrency may be used.

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Mr. Sprecher said the bitcoin market was now dominated by buyers, not sellers, and it was unclear who would short bitcoin when given the chance. We plan to grow through acquisition and investment in disruptive and foundational technologies by targeting early-stage businesses that have market viable products or by starting a new subsidiary of our own. Transaction volume is an important indicator that signifies investor interest - short term and long term. Still, he said the firm designed the product to ensure it'll provide the best, most liquid market.

Terry Duffy, the chief executive of CME, said the path forward for bitcoin futures is relatively uncertain.

As for bitcoin, the cryptocurrency itself was up more than 1,000 per cent at $11,389 as of Monday.

One wildcard is the upcoming rollout of bitcoin futures, which will begin trading on the CBOE in just a few days. On the other hand, several economists and banking experts have gone so far as to call bitcoin a "fraud" and claim that this is a bubble unlike anything the world has ever seen. If that limit is hit, trading can only continue at or within the +/- 20 per cent limit for the remainder of the trading session. At a conference in October, Dimon even doubled down on his comments by saying that if people are "stupid enough to buy it", they'll pay the price for it one day. The CBOE made a point in its press release this morning to say trading would be free through December, but doesn't say how much it would be after.

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