Bitcoin futures trading could burst its own bubble
published 19.12.2017 09:59
The launch of Bitcoin futures at CBOE is set to be followed by its cross-town rival, the Chicago Mercantile Exchange (CME) Group, which plans to launch its own version of Bitcoin futures trading on December 18.
One party to the contract agrees to buy a given quantity of securities (such as stocks or bonds) or commodities (oil, gold, Bitcoin), and take the delivery on a future date while the other party agrees to deliver the asset.
Such was the excitement at the launch of futures that the Bitcoin price touched an all-time high of US$17,382.64 after one day of CBOE trading.
Bitcoin futures allows traders to speculate on what the Bitcoin price will be at a later date.
The volume of trading since bitcoin’s launch on CBOE has been relatively low, especially compared with more established currencies futures.