Bitcoin futures launched

After last week’s CBOE milestone when they started Bitcoin futures trading, this week opens with the historic step of the much bigger CME, where from now on Bitcoin futures are available.

With CME's entry into the Bitcoin market the interest in the crypto-currency is likely to grow spectacularly, which will possibly result in a rise in the value of Bitcoin.

The appearance of Bitcoin futures has outstanding significance because of one simple fact: buying Bitcoin directly is strictly PROHIBITED for institutional investors because the market is unregulated, however they are ALLOWED to buy futures contracts, and from now on Bitcoin futures are available for them. Practically, it means that investors can now bet on Bitcoin rising or falling in price without buying Bitcoin.

Matt Osborne, chief investment officer of Altegris said: "/…/ Volumes are going to slowly increase as professional traders get comfortable with the price action and more importantly get comfortable with the volatility."

Bitcoin’s significance has reached a level where the French Finance Minister, Bruno Le Maire called for a Bitcoin discussion at the next G20 summit that will take place in April next year.

Monsieur Maire said in an LCI interview: "/.../ We need to consider and examine this and see how... with all the other G20 members we can regulate Bitcoin".

No wonder finance (at least, traditional finance) experts are concerned. Bitcoin prices have left everyone speechless this year: Bitcoin started the year at less than $1,000 and it reached, according to Coindesk's figures, a new record of $19,783 yesterday.


Zsolt Balló