Money Bitcoin futures are about to go live, and they could change the game for cryptocurrencies

10:56  12 december  2017
10:56  12 december  2017 Source:   Business Insider Australia

Bitcoin Futures Start With a Bang as 26% Rally Triggers Halts

  Bitcoin Futures Start With a Bang as 26% Rally Triggers Halts Bitcoin has landed on Wall Street with a bang. Futures on the world’s most popular cryptocurrency surged as much as 26 percent in their debut session on Cboe Global Markets Inc.’s exchange, triggering two temporary trading halts designed to calm the market. Initial volume exceeded dealers’ expectations, while traffic on Cboe’s website was so heavy that it caused delays and outages. The website’s problems had no impact on trading systems, Cboe said.

## Bitcoin futures are about to go live , and they could change the game for cryptocurrencies . !

Many people think bitcoin futures , if they go well, will open the door to wider participation in the bitcoin markets by Wall Street firms and retail The futures will settle in cash, not the underlying cryptocurrency itself. That means traders can speculate on the coin without actually having to touch it.

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Just when you thought you finally got your head around bitcoin, along comes a new bitcoin-linked financial product: bitcoin futures.

Cboe Global Markets, the Chicago-based exchange group, will be the first exchange to launch bitcoin futures on Sunday. And you can be sure Wall Street will be watching. CME Group, Cboe's cross-town rival, will launch its market later in December. And Nasdaq is preparing for a launch for the second-half of 2018.

The new product by Cboe will allow investors to bet on the future price of bitcoin, which skyrocketed to an all-time high above $US17,000 on Thursday, according to data from Markets Insider. Many people think bitcoin futures, if they go well, will open the door to wider participation in the bitcoin markets by Wall Street firms and retail investors.

Iron ore markets remain wild, rivalling the volatility seen in Bitcoin in recent days

  Iron ore markets remain wild, rivalling the volatility seen in Bitcoin in recent days The price swings across iron ore markets remain wild, rivalling those seen in Bitcoin in recent days. The price swings across iron ore markets remain wild, rivalling those seen in Bitcoin in recent days.

Many people think bitcoin futures , if they go well, will open the door to wider participation in the bitcoin markets by Wall Street firms and retail The futures will settle in cash, not the underlying cryptocurrency itself. That means traders can speculate on the coin without actually having to touch it.

BusinessBitcoin futures are about to go live , and they could change the game for cryptocurrencies (businessinsider.sg). submitted 4 hours ago by BobsBurgers3 Bitcoin .

Cboe President Chris Concannon has already hinted other cryptocurrency futures might be on the horizon.

We've answered some of the questions you might be asking yourself about bitcoin futures.

What is a future?

A future is a type of financial product, which allows two parties to exchange an asset at a specified price at an agreed upon date in the future. They have been around since the late 19th century. They are traditionally traded by professional investors and firms. There are futures based on everything from oil to corn. In some cases, when a futures contract settles the buyer of the contract can receive their payment in the product itself (a barrel of oil, say), or in cash. The latter are referred to as cash settled futures.

South Korea has reportedly banned bitcoin futures

  South Korea has reportedly banned bitcoin futures South Korea has banned securities firms from handling bitcoin futures. Exchange operator Cboe launched first bitcoin futures on Sunday night. Huge demand for the product crashed <g class="gr_ gr_5 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" data-gr-id="5" id="5">Cboe's</g> website and sent prices jumping.Business Korea reported that the Financial Services Commission of Korea issued a directive banning securities firms from taking part in bitcoin futures transactions, citing sources.

Many people think bitcoin futures , if they go well, will open the door to wider participation in the bitcoin markets by Wall Street firms and retail The futures will settle in cash, not the underlying cryptocurrency itself. That means traders can speculate on the coin without actually having to touch it.

Bitcoin futures are about to go live , and they could change the game for cryptocurrencies . 1. Here are live updates on bitcoin news, the latest price and graphs 1 day ago But a little known cryptocurrency has put to shame the meteoric rise in bitcoin .

How do Cboe's bitcoin futures work?

Cboe's bitcoin futures, which are set to launch at 5:00 p.m. CT, will allow investors to bet on the future price of the red-hot coin. The product will trade under the ticker XBT. Cboe will be waiving all transaction fees for bitcoin futures until the end of December. The futures will settle in cash, not the underlying cryptocurrency itself. That means traders can speculate on the coin without actually having to touch it.

Cboe is basing its futures on the pricing of Gemini's exchange, which was founded by the famous Winklevoss twins.

Traders will have to put some money on the table for their bets. Since bitcoin is so volatile, traders of Cboe bitcoin futures are required to have at least 44% of the bitcoin settlement price set aside for their bet. So-called margins are typical for futures, but are under 10% for the most part. Think of them as a down-payment for risk. VIX margins, however, can get up to 50% because they can sometimes have a high risk profile.

Volatility set to play havoc with bitcoin futures

  Volatility set to play havoc with bitcoin futures Bitcoin prices swung wildly over the weekend, heightening concerns that the new futures markets might struggle.Futures in the manic cryptocurrency markets begin trading on Monday after an extremely volatile weekend that saw the price of bitcoin crumble 25 per cent from last week's record highs.

Cboe Global Markets' bitcoin futures product launches Sunday. The product will allow investors to bet on the coin's future price and could open the door to wider-participation in the market by retail investor and institutions. The futures will settle in cash, not the underlying cryptocurrency itself.

Cboe Global Markets’ bitcoin futures product launches Sunday. The product will allow investors to bet on the coin’s future price and could open the door to wider-participation in the market by retail Cboe President Chris Concannon has already hinted other cryptocurrency futures might be on the horizon.

Screen Shot 2017 12 08 at 6.22.30 PM© Provided by Business Insider Inc Screen Shot 2017 12 08 at 6.22.30 PM

Can I short bitcoin now?

Yes. If a trader bets the price will go up and if the price of bitcoin is higher at the point of the contract's expiration, then they profit. At the same time, if a trader bets the price will go down and it does, then they will get paid from folks on the other side of the bet. Cboe's expiration date for the contracts being sold Sunday is January 17.

How do I buy a bitcoin futures contract?

Retail investors can buy futures contracts through their broker. But only a few firms are seriously thinking about unleashing bitcoin futures just yet. TD Ameritrade, one of the largest online brokers, is taking a "wait and see" approach and won't provide the product for clients until they think the market is ready. It looks like folks with Charles Schwab, Fidelity, and Etrade accounts won't be able to buy the product, at least in the short term. Ally Financial, according to Bloomberg, will let users buy bitcoin futures.

As far as the big banks are concerned, many have said they won't clear trades for bitcoin futures. JPMorgan and Citigroup, which are two of the largest futures brokers, will not participate in the market Sunday. Nor will Societe Generale. Interactive Brokers and Wedbush will participate, according to reporting by the Financial Times.

The Winklevoss twins think bitcoin could 'go up another 20 times' and trounce gold

  The Winklevoss twins think bitcoin could 'go up another 20 times' and trounce gold The Winklevoss twins think bitcoin could appreciate 20 times and trounce gold. Others say the cryptocurrency is in a bubble. Traders in the new bitcoin futures market appear bullish on the red-hot coin. Contracts for the January futures contract on Cboe Global Markets were trading well-above the spot market for bitcoin, at over $US17,500 a coin on Monday.But most traders are nowhere near as bullish as the Winklevoss twins. Tyler and Cameron Winklevoss, whose bitcoin holdings are worth more than $US1 billion, told Fox Business Monday the coin could reach well above $US300,000 a coin.

Bitcoin price surges as futures trading begins, despite bubble warnings – business live . Futures Launch Could Rekindle Push for a Bitcoin ETF, CBOE Says. 12/10/2017. 5 major misunderstandings of cryptocurrencies .

Cboe Global Markets' bitcoin futures product launches Sunday. The product will allow investors to bet on the coin's future price and could Cboe President Chris Concannon has already hinted other cryptocurrency futures might be on the horizon.

Goldman Sachs will clear futures for some clients.

Day one trading is going to be comprised mostly of the customers who have been begging for bitcoin futures, according to person familiar with Cboe's bitcoin futures. These are likely to be the investors who've been trading bitcoin itself.

Why are people excited about bitcoin futures?

There are a number of reasons why bitcoin futures products are a big deal for Wall Street and the world of crypto. First, the launch of bitcoin futures by establishment firms is likely to to open the door to wider participation in bitcoin trading by other Wall Street firms. It could also pave the wave for an exchange-traded fund, which could bring more investments into the space. Most importantly, it could help dampen bitcoin's spine-tingling volatility.

What are some of the concerns about bitcoin futures?

Some people don't think the underlying bitcoin market is mature enough for a futures market. The market is unstable with bitcoin exchanges under pressure and printing wildly different prices when trading volumes spike. Hacks and security problems are also widespread. Critics think that instability in bitcoin could spread to other corners of the futures markets.

Bitcoin prices have slumped as Bitcoin Cash skyrockets .
Bitcoin prices fell sharply this morning, as a flood of money <g class="gr_ gr_4 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace" data-gr-id="4" id="4">moved</g> into Bitcoin Cash.Prices have fluctuated wildly, but a short time ago Bitcoin briefly dipped below $US16,000 on the composite index provided by Coindesk.com -- a fall of more than $US2,000 from yesterday's prices.

Source: http://au.pressfrom.com/news/money/-49249-bitcoin-futures-are-about-to-go-live-and-they-could-change-the-game-for-cryptocurrencies/

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