Two Days of Cboe’s Bitcoin Futures #Show
This weekend on December 10, the Chicago Board Options #Exchange
(Cboe) began its first trading #sessions.
Since then the introduction of bitcoin-based derivatives held on a well-known mainstream exchange, the news has injected a surge of positivity #into
bitcoin’s spot markets. Moreover, the price of Cboe’s futures products has been trading wildly starting off at the $15K mark and has reached an all-time high of $18,650.
Two Days of Cboe's Bitcoin #Futures
Show Intense #Volume
Fluctuations Cboe’s bitcoin-based futures one-month bitcoin contract (XBT:1) started #trading
this past Sunday, and is currently up over 8 percent higher than bitcoin’s spot price. BTC spot #markets
have been on a tear leading #up
to the #mainstream
derivatives products with a global average hovering between the $16,900-17,200 region. Cboe’s futures products are a different animal and contracts are #cash
-settled based on the #BTC
price data provided #Gemini
in U.S. #dollars.
These exchange-traded #derivatives
products are bets on the future price of bitcoin and #investors
wager on whether the value will be high or low. If the price of bitcoin rises or dips, the contract #holder
is paid out based on how much the value has climbed or dropped within a specified time-frame.
The futures #markets
initiated by the #Chicago
initially surged over 15 percent when it first opened. At the start of the trading session, the company’s website suffered from heavy #traffic
and was unavailable for many spectators. However, Cboe revealed the actual futures market was unaffected by the website outage. In addition to this, trading was halted according to a Cboe spokeswoman. The platform’s futures trading can be stopped if bitcoin’s #price
experiences large #volatile
futures can only be purchased from a certified brokerage service and not all #financial
management brokers offer bitcoin-based derivatives products. Although, there are not that many services providing this product at the moment. One bitcoin futures retailer suggested by Cboe’s website is #Interactive #Brokers