Fresh wind for Bitcoin futures
With the latest events comes fresh wind in the American stock market city Chicago on the still unborn crypto futures. For example, the Chicago Board Options Exchange (CBOE) option book publishes technical details on its planned Bitcoin futures for the first time last week. The CME Group also confirms the introduction of its December futures. This will probably make reality for crypto investors at the end of the year out of Vision.
The fog surrounding the new business of crypto derivatives is increasingly coming to light with the news of the American options exchanges of the past few days. Both the CBOE option exchange and its competitor CME Group, which also comes from the "Windy City", are waiting with innovations concerning the planned Bitcoin derivatives. Thus, the new investment model of the still hazy Bitcoin contracts is slowly getting a face.
First, the background: Both exchanges had announced the introduction of so-called Bitcoin futures. As such, exchange-traded futures are referred to. They require the buyer to deliver or buy a certain amount of Bitcoin at a specific future time at a specified price or exchange rate. Futures are regarded as highly risky on the stock market because they allow large profits in no time at the same time as enormous losses.
As CBOE reports on their website last week, the first technical details of their bitcoin derivative, which has been planned since August, are now available. For example, the contracts will in future be listed under the symbol XBT. In addition, such futures should be able to be concluded with weekly contract periods as well as for several weeks and entire quarters.
Although the factsheet that has just been published already answers many questions regarding future contract options, basic details remain open at this time. Thus, neither the actual implementation date nor the pricing of the futures are fixed at this time. In this context, the stock exchange advises customers of premature speculation in the past week. So writes Russel Rhoads of CBOE:
"The question I'm constantly hearing is, how will futures prices relate to bitcoin prices?" The best and most honest answer is: I do not know, "
and refers to the future market situation for the still uncertain start of futures transactions.
While this is still waiting for the blessing of the competent US derivatives supervision CFTC, the competition is already whetting the knives. After the CME Group announced in late October to expand its business to the crypto sector, and CME CEO Terry Duffy had already promised customers investments in mid-December, the website of the world's largest options exchange attracted a fixed date this week. So it was said for a short time, the corresponding futures would be possible from 11 December.
A little later, however, this message was deleted again. As reported by Reuters, according to CME, this would have been a mistake. On the website of the stock exchange it says instead instead:
"Subject to all regulatory redemptions, please be aware that CME will offer Bitcoin futures in Q4 2017 [English: Effective Q4 2017]."
Although the current date is lost, the company nevertheless notes the introduction of corresponding forward contracts for the current year. If there are no regulatory hurdles, investors can expect to see the launch in mid-December.
When the CME Group expands its business to Bitcoin futures, the British pedant will soon leave his home, Ellis said.
The fog surrounding the new business of crypto derivatives is increasingly coming to light with the news of the American options exchanges of the past few days. Both the CBOE option exchange and its competitor CME Group, which also comes from the "Windy City", are waiting with innovations concerning the planned Bitcoin derivatives. Thus, the new investment model of the still hazy Bitcoin contracts is slowly getting a face.
First, the background: Both exchanges had announced the introduction of so-called Bitcoin futures. As such, exchange-traded futures are referred to. They require the buyer to deliver or buy a certain amount of Bitcoin at a specific future time at a specified price or exchange rate. Futures are regarded as highly risky on the stock market because they allow large profits in no time at the same time as enormous losses.
As CBOE reports on their website last week, the first technical details of their bitcoin derivative, which has been planned since August, are now available. For example, the contracts will in future be listed under the symbol XBT. In addition, such futures should be able to be concluded with weekly contract periods as well as for several weeks and entire quarters.
Although the factsheet that has just been published already answers many questions regarding future contract options, basic details remain open at this time. Thus, neither the actual implementation date nor the pricing of the futures are fixed at this time. In this context, the stock exchange advises customers of premature speculation in the past week. So writes Russel Rhoads of CBOE:
"The question I'm constantly hearing is, how will futures prices relate to bitcoin prices?" The best and most honest answer is: I do not know, "
and refers to the future market situation for the still uncertain start of futures transactions.
CME Group is serious
While this is still waiting for the blessing of the competent US derivatives supervision CFTC, the competition is already whetting the knives. After the CME Group announced in late October to expand its business to the crypto sector, and CME CEO Terry Duffy had already promised customers investments in mid-December, the website of the world's largest options exchange attracted a fixed date this week. So it was said for a short time, the corresponding futures would be possible from 11 December.A little later, however, this message was deleted again. As reported by Reuters, according to CME, this would have been a mistake. On the website of the stock exchange it says instead instead:
"Subject to all regulatory redemptions, please be aware that CME will offer Bitcoin futures in Q4 2017 [English: Effective Q4 2017]."
Although the current date is lost, the company nevertheless notes the introduction of corresponding forward contracts for the current year. If there are no regulatory hurdles, investors can expect to see the launch in mid-December.
Soon crypto-futures "Made in UK"?
At the end of the year, a chain reaction is expected to set in motion, with the west wind from Chicago also carrying the business model into European latitudes. For example, the managing director of British hedge fund Man Group Luke Ellis had announced that he was also venturing into new territory for the crypto derivatives.When the CME Group expands its business to Bitcoin futures, the British pedant will soon leave his home, Ellis said.
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