CME President Hesitant To Develop Additional Cryptocurrency Derivatives
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Following last week's 'successful' launch of Cboe Bitcoin futures, CME will begin trading of their own 'more institutional' Bitcoin futures contract today. Reuters, Cboe, and CME. The last week was likely a disappointing one for the status-quo-supporters as the 'unleashing' of futures contract that would enable shorting of Bitcoin and bring an end what is bitcoin futures cme the "well it's a bubble" surge in cryptocurrency In fact, bitcoin rallied notably, despite compression of the spot-arb, to a new record high JPMorgan's Nikolaos Panigirtzoglou notes that thus far the what is bitcoin futures cme of Bitcoin futures traded have remained rather modest.
The intraday data available on futures volumes suggest that during the first day of trading, the majority of the volume was concentrated in Asian trading hours Figure 5. Since then, the volumes have tended to be concentrated in US trading hours, though on What is bitcoin futures cme volumes have been more spread out over different time zones. When trading first started, the most striking feature was the wide basis between the futures contract and the underlying bitcoin prices.
Given the futures contracts are for settlement in what is bitcoin futures cme ahead, some margin will persist as a function of interest rates and convenience yields, i. There are a number of potential factors that could put upward pressure on this convenience yieldkeeping the futures contracts trading above spot prices. First, cash settlement of the futures contracts arguably provides a somewhat less tight link to the underlying asset than if it were physically settled.
In addition, some participants might prefer to have the option of taking physical delivery of Bitcoins, similar to how commodity futures have traditionally been settled, rather than delivery in cash that then has to be converted to Bitcoin separately. Second, quoted prices for Bitcoin on various cryptocurrency platforms as well as on Bloomberg are typically quoted as an average across a number of exchanges.
The use of a single exchange may introduce some additional volatility in the futures price. Third, there may be some investors who have been unable or unwilling to buy bitcoins on unregulated exchanges that are more willing to use regulated futures exchanges though e. This could see prices at which the futures market clears biased higher than on cryptocurrency platforms until these investors have increased their exposure closer to a desired level. As CME Bitcoin futures begin trading today, there will be competition between the two exchanges to attract volumes.
So the question is - what will happen when the bigger CME Bitcoin futures contract starts trading? We have allowed our clients to go long or short to take advantage of dislocations between the futures and the underlying spot market.
As CoinTelegraph explains, what is bitcoin futures cme is a case for the bulls and the bears It is well known that a minority of Bitcoin holders-- the whales -- hold a majority of the Bitcoin in circulation.
It is rumored that roughly 1, people own 40 percent of all what is bitcoin futures cme Bitcoin. It is possible that the whales took a short position in their contracts, meaning they believe the price of the Bitcoin futures contract will be below the contracts purchase price at the date of expiration.
Because a whale might have unfathomable amounts of money and the belief that their contract will expire at a value what is bitcoin futures cme than the price they purchased the contract for, it would not be surprising if the whales pumped up Bitcoin price in the days leading up to the contract expiration date by buying more Bitcoin, and then sell what is bitcoin futures cme a large chunk of it on an exchange at the inflated price - hours before their contract expires.
The whale would experience a capital gain from driving the price up and selling off, and because this could cause Bitcoin price to plummet, the whales futures contract s are likely to expire below the contract what is bitcoin futures cme price, meaning the whales with short contracts would experience a capital gain from their futures contract in addition to that from selling off the actual asset Bitcoin.
In the days shortly after the first futures contracts expire, it would not be surprising to see the whales who took short positions use their profits from trading on exchanges and the futures market to buy back Bitcoin at the discounted price that they might have caused the market to drop down to.
Maybe the whales and investors have taken a long position; meaning they believe the price of the first Bitcoin futures contracts will finish what is bitcoin futures cme the price they were purchased at. Although this is possible, it does not seem as plausible as the short theory. Similar to futures contracts and the majority of Bitcoin price lately, this is pure speculation. However, this is not my first rodeo. Finally, we note that, as Bloomberg points out, banks and brokers who are offering access are being cautious.
Goldman Sachs Group Inc. The guidelines are inclusive of other margin requirements such as Options Clearing Corp. Interactive Brokers Group Inc. These factors, along with the fact that the CME is a larger exchange, could give it an advantage in terms of attracting trading volumes. Its just another fiat magic trick.
Once you have seen behind the curtains its hard to miss just how much of it is just a magic trick. What features does BTC have that cause it to be trading so much higher than LTC, apart from first mover advantage, which isn't a feature, but a historical reality?
Understanding how the fiat magic is used helps. Basically tptb tricked people into believing that a measurment done with rubber bands was legit. Look at the values of netflicks, amazon, tesla and a bunch of others opperating on fiat magic alone.
Those values have nothing to do with actual real world profits. Andy, I think you know that I understand how fiat and the markets work. And on a long enough timeline In the meantime, while you have been suffering from paralysis of analysis, I have recovered my initial investment, paid for a child's college tuition, and still have a big chunk left to play with.
Thanks again to Ken and Jonathon for coming out to Marfa!!! Im old so it matters more to me what kinda mess I leave behind. Being only a few years away from the age my parents both past what is bitcoin futures cme.
Its a perspective thing I guess. I have some perspective as well. Every year, for the past 20 what is bitcoin futures cme, I have earned more money than my father earned in his entire life, working from age 14 to This truth has everything to do with money printing, and either understanding its ramifications, or being stubborn. When you reach those pearly gates God is going to judge you for what you did in life So if you love working on projects so much go spend your limited time working on projects and less time on the internet judging others for how they invest in life.
Now look us in the face and tell us it's not a fucking casino. Those outside the cryptocurrency world only know of Bitcoin. In time that will change. Once Bitcoin cryptocurrency becomes more widely held, used, and understood, it's a what is bitcoin futures cme hop to use alt-coins and enjoy their superior features. In reply to Brand awareness. LTC has the brightest future of all. An earlier article answered why pretty clearly earlier today. If you want to buy xvg you need one of the others first.
Inbound fiat will continue to pump btc and eth as long as the exchanges don't change. I would not hold bitcoin except a minimum to facilitate transactions. On the otherhand, using www. Only if you withdraw in bitcoin will you pay a network fee. If you get over grams of gold accumulated you can take the physical exit. You can fund your account using alts instead of bitcoin. We should all know that by now.
In reply to To: So people are essentially betting against the house. In reply to who the hell is taking the by ZH Snob. In reply to AI is going to and IS by ffed. The Birth of Bitcon Two friends, Bob and Satosh are sitting around after an evening of consuming copious what is bitcoin futures cme of some especially wicked dank.
Bob says to Satosh: I have a genius ideaYeah, what is it? You know that app you coded We get that graphic artist you know create a slick image of a 'gold' coin, and then we can further confuse the rubes by telling them their 'coins' have to be "mined", as if they were real, physical metals. What kind of moron would buy something like that?
Remember that now worthless token you paid stupid money for on WoW? They sit there and stare at each other for a moment, and then both burst out into torrents of tear stained laughterThey are still laughing today. The rest is history. Someone let grandpa use the library computer again. Make sure he gets his meds, he tends to forget what is bitcoin futures cme zip up the front of his drool-spattered jumper.
In reply to U been saying that shit since by FreeShitter. In reply to Exactly. Shut the fuck up you by tmosley. Nothing more lucrative than a wage slave to exploit.
Enter stage left BTC. The cold, hard truth of cryptos and the people who speculate in them is that theyare not doing it for any noble or altruistic reason And in doing so, in their greedy, Gollum-like obsessive race to collect as much 'precioussss' as possible, they singlehandedly push the entire planet that much closer to digital fiat, to a one worldcurrency.
Which by definition makes them worse than the most vile and evil banker alive. Enslaving people living now and those not even born yet, all in a greedy and mindlessrace to collect as many clown bucks as possible. In reply to The cold, hard truth of by Sheesh-Kaboob. In reply to started out that way but now by Number 9. Always keep an eye out for chances to barter. Those deals seem to work out best for both parties pretty consistantly.
In reply to you live in different sphere by Number 9. Sort by Relevance Newest Oldest.
