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

  • MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018
  • Ford announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor ShowFord announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor Show
  • Automobile Revenues will fall 40% due to Electric and Autonomous VehiclesAutomobile Revenues will fall 40% due to Electric and Autonomous Vehicles
  • Mexico debuts its best startups for 2018 at CESMexico debuts its best startups for 2018 at CES
  • Inside the Secret Society Running the World of CryptocurrencyInside the Secret Society Running the World of Cryptocurrency
  • Opinion: Who Will Profit Off the Next Crash?Opinion: Who Will Profit Off the Next Crash?
  • This is how Jeff Bezos will support the This is how Jeff Bezos will support the 'dreamers'
  • Oil Reaches $70 a Barrel for First Time in Three YearsOil Reaches $70 a Barrel for First Time in Three Years
  • Peso predicted to make comeback in 2018: BloombergPeso predicted to make comeback in 2018: Bloomberg
  • Chihuahua´s governor denounces Government reprisals for PRI corruption investigationChihuahua´s governor denounces Government reprisals for PRI corruption investigation
  • US Weather Disasters Cost Record $306 Bn. Dollars in 2017US Weather Disasters Cost Record $306 Bn. Dollars in 2017
  • CES 2018: "E-Sports will be the most watched and played sport in the next decade"CES 2018: "E-Sports will be the most watched and played sport in the next decade"
WATCH LIVE TV



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

Language

Mexico News Network
All rights Reserved 2018