Bitcoin futures was live on Cboe International Markets, the Chicago-based exchange, on Sunday evening and price of the red-hot coin upsurged.
Cboe’s future deals, which trade below the ticker XBT, let investors to place bet on the future bitcoin price. Bitcoin went up over $1,000 after which investors could begin buying contracts at 6:00 p.m. ET.
Based on the data from CoinDesk, bitcoin rose from $14,509 a coin at 5:59 p.m. ET to $15,704 at 6:07 p.m. It lost some of the gains so it was trading at $15,178 at 6:11 p.m. The futures contracts traded at $16,000 immediately after the market went live, higher than the point bitcoin traded in the spot market at the printing time.
Trade in the early stages was silenced. Only 800 contracts was trading within the first 2 hours of the market going live, according to Cboe. Yet, volumes excited one trader.
— Cboe (@CBOE) December 11, 2017
“There was actually more volume than I expected,” Garrett See, the Chief Executive Officer of DV Chain, the cryptocurrency trading section of Chicago-based DV Trading, made this known to Business Insider.
“It was hard for people to access this market on the first day since just some brokers were clearing the trades for clients,” he stated.
JPMorgan and Citigroup, two of the biggest futures brokers, didn’t take part in the market Sunday, not also Societe Generale. Goldman Sachs said it would complete futures for some clients.
Still, interest in the current market showed to pressurize Cboe. Its website experienced downtime immediately after bitcoin trading futures was underway. Cboe tweeted:
Due to heavy traffic on our website, visitors to https://t.co/jb3O722hoo may find that it is performing slower than usual and may at times be temporarily unavailable. All trading systems are operating normally.
— Cboe (@CBOE) December 10, 2017
“This launch is goes as anticipated sans [Cboe’s website] crashing,” John Spallanzani, chief macro strategist of GFI Group, said. “It speaks to the interest in bitcoin. There has not been this huge interest in something since the internet boom.”
Bitcoin futures are the recent evolution in the market enclosing the cryptocurrency, which has increased value above 1,400% this year. Two other exchange operators are also about to launch their own bitcoin futures deals.
There are many reasons bitcoin futures goods are a big deal for Wall Street and the world of crypto. 1st, the launch of bitcoin futures by big firms is most likely to give way to more participation in bitcoin trading by other Wall Street companies. It may also pave the wave for an exchange-traded fund, which may attract more investments into the space. Most importantly, it may assist dampen bitcoin’s spine-tingling change
Credit : Business Insider