WINDY CITY BITCOINS: Crypto-currency futures soar on first ever exchange listing

Chicago – VIJAY SHAH via Daily Sabah

In a parallel with the surging value of crypto-currencies such as Bitcoin recently as well as public interest in the subject, the first ever listing of Bitcoin futures on a physical currency exchange saw a rapid rise in value, Turkey’s English language newspaper The Daily Sabah reported via wire agencies recently.

Yesterday saw the introduction of futures valued in Bitcoin put up on the Chicago Board Options Exchange (CBOE), set for expiry in January 2018. Its initial value was set at 5 pm local time at USD $15,000 (GBP £11215.50). By 1:30 am the value of the futures had risen comfortably to $18,590 (GBP £13901), according to figures quoted in the Daily Sabah from trading firm CBOE Global Markets.

 

Bitcoin has enjoyed a bumper 2017, with ceiling-shattering rises in value. While starting off the year on a record low of USD $1,000 (GBP £748) per coin, the value rocketed to $16,858 (£12612) on online trading exchange Coindesk. The currency is currently around the $16,612 mark.

Bitcoin futures are a type of speculative financial instrument that allows investors to bet on whether the currency’s price in physical money will rise or fall.

According to Bob Fitzsimmons, a futures manager at Wedbush Securities, the initial offering of the CBOE Bitcoin futures was quiet and steady before interest, much like the currency itself, began to accelerate. Eventually a thousand trades were made in the first two hours after opening. Chicago may well soon become a hub for Bitcoin futures trading, as CBOE’s rival, the Chicago Mercantile Exchange, also plans its own crypto-currency listing later this week, The Daily Sabah mentions.

The growing publicity of Bitcoin and other crypto-currencies such as Litecoin and Ethereum is enticing traders looking for something a little different, while still productive, despite many in the world of economics avoiding virtual currencies due to their lack of central authority, their fluidity in transactional spaces and their volatility in real-world prices.

“It gives it legitimacy. It recognizes that it’s an asset you can trade,” said Nick Colas, of Data Trek research.

The CBOE listing was given the go-ahead by the United States Commodities and Futures Trading Commission (CFTC) on the first day of this month. The CTFC did however warn would-be traders of Bitcoin’s ‘potentially high level of volatility and risk in trading these contracts (BTC futures)’. Others have expressed concerns that listing the futures on physical exchanges could see investors fall victim to the effects of ‘short sellers’, who bet on downward moves in assets.

SOURCES:

Vijay Shah { विजय }, Twitter, Twitter Inc. https://twitter.com/VShah1984

Bitcoin Sportsbook, Twitter, Twitter Inc. https://twitter.com/SportsbookBTC

“Bitcoin futures soar in first hours of its debut on major exchange” – Daily Sabah Finance/Turkuvaz Haberleşme ve Yayincilik Anoni̇m Şi̇rketi̇ (10 December 2017) https://www.dailysabah.com/finance/2017/12/11/bitcoin-futures-soar-in-first-hours-of-its-debut-on-major-exchange

IMAGE CREDIT:

“Free photo: Bitcoin, Stock Exchange, Profit – Free Image on Pixabay – 2643188” – geralt, Pixabay (11 September 2017) https://pixabay.com/en/bitcoin-stock-exchange-profit-share-2643188/

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