Bitcoin futures trading begins on CBOE exchange in Chicago

By Elliot Bullman

Bitcoin has begun trading on a major exchange for the first time.

Bitcoin launched on the CBOE futures exchange in Chicago on Sunday, allowing investors to bet on whether Bitcoin prices will rise or fall. Bitcoin's introduction to the CBOE has been seen by some as a step towards legitimising the currency.

Bitcoin futures trading begins on CBOE exchange in ChicagoPhoto Credits: Twitter El Economista

The move is expected to be followed next week by a listing on the rival Chicago Mercantile Exchange.

CBOE trading saw the Bitcoin futures contract expiring in January start at $15,000 before rising to above $18,000. The contract is based on the price of Bitcoin as quoted on the Gemini exchange.

The Gemini exchange was set up by the Winklevoss twins, who were early fans of the crypto-currency and who have been called the first Bitcoin billionaires.

Bitcoin fans appear excited about the prospect of an exchange-listed and regulated product and the ability to bet on its price swings without having to sign up for a digital wallet.

Bitcoin futures trading begins on CBOE exchange in Chicago  3Photo Credits: Twitter Technow

Others, however, caution that risks remain for investors and possibly even the clearing organizations underpinning the trades.

The launch has so far received a mixed reception from big U.S. banks and brokerages, though. Several online brokerages, including Charles Schwab Corp (SCHW.N) and TD Ameritrade Holding Corp (AMTD.O), did not allow trading of the new futures immediately.

Bitcoin’s manic run-up this year has boosted volatility far in excess of other asset classes. The futures trading may help dampen some of the sharp moves, analysts said.

Bitcoin futures trading begins on CBOE exchange in Chicago  2Photo Credits: Twitter 20minutos

Sceptics argue that the CBOE futures will simply draw more naïve investors into perpetuating a bubble in a financial asset that Nobel economist Joseph Stiglitz has accused of having no intrinsic value beyond supporting money laundering and tax avoidance.

Bitcoin is not regulated by any country's central bank and has no universally recognised exchange rate.

RELATED NEWS

  • Trump backs down and signs executive order to Trump backs down and signs executive order to 'keep families together'
  • Despite uncertainty about the election, Mexico continues to attract investmentsDespite uncertainty about the election, Mexico continues to attract investments
  • On Saturday, repaving works start in Cancun’s hotel zoneOn Saturday, repaving works start in Cancun’s hotel zone
  • Mexican entrepreneurship project receives award in FranceMexican entrepreneurship project receives award in France
  • MexicoMexico's foreign minister and business leaders express outrage over ‘inhumane’ US immigration policy
  • The Dow Jones industrial average turned negative as global trade war fears mountThe Dow Jones industrial average turned negative as global trade war fears mount
  • Canada legalizes recreational cannabis useCanada legalizes recreational cannabis use
  • EU to retaliate against US with counter-tariffs on FridayEU to retaliate against US with counter-tariffs on Friday
  • Mexican national team football shirt is best  seller in the United StatesMexican national team football shirt is best seller in the United States
  • Scorpion catching is a dangerous trade that allows Durango’s locals to survive.Scorpion catching is a dangerous trade that allows Durango’s locals to survive.
  • Rafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cupsRafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cups
  • It’s not just in football that Mexico is superior to GermanyIt’s not just in football that Mexico is superior to Germany
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018