Imagine for a second you had invested a bunch of money into bitcoin a few years ago.
You wouldn’t be reading this, you’d be on your yacht sailing around the world…
But, like most investors you probably missed the boat, or worse, have no idea to invest in bitcoin.
On Oct 31, the CME announced its intention to launch bitcoin futures, and the price of bitcoin immediately popped.
If the Chicago Merc is getting involved, it might be happening in real life.
Now jump ahead to today, and bitcoin is soaring, up a ridiculous amount today alone.
And now it is not just the CME, the CFTC gave their tacit endorsement by way of approving CBOE to start trading it as well.
There are rumors that the Nasdaq wants a piece of the action.
It all begins on December 10, when CBOE launches its futures, beating out the CME by 8 days.
Here is a quick snapshot of bitcoin prices from inception to December 5th.
Should You Rush Into The Market?
The entrance of mainstream exchanges to the crypto trading world will bring institutional investors and Wall Street types. That’s exciting to many. As CoinDesk puts it, derivatives trading will bring to bitcoin a “new kind of whale.”
CME chairman and CEO Terry Duffy explained CME’s reasoning thusly on CNBC: “You can’t ignore the fact that this is becoming more and more of a story that won’t go away, by mainstream companies that want to have access to this product.” And CBOE CEO Ed Tilly put it similarly, pointing to red-hot interest in bitcoin as the impetus: “Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure,” says Tilly.
In other words, bitcoin is trending, and Big Finance is rushing in.
LedgerX Co-founder and President Juthica Chou, a former Goldman Sachs trader, says regulated options trading, “gives the guarantee and the safety that the bitcoin ecosystem really needs, especially for institutional involvement. There was never really a way to bet against bitcoin or to hedge that downside risk.”
Indeed, bitcoin options and futures also bring the first real chance to short bitcoin, since you could bet on the price going down. But for bitcoin purists, that’s alarming, and a potential danger to the bitcoin price. (Could bitcoin be the next big short?)
CME, Cboe, and Nasdaq are all rushing to launch a Bitcoin futures product.
I think this is good news as it will be much easier for institutions to buy BTC. But it’s also much easier to short BTC now.
Do you think this us bullish or bearish for BTC price in the short term?
— Charlie Lee [LTC] (@SatoshiLite) December 4, 2017
Keep in mind that the biggest investors out there have put out numerous warnings that bitcoin is a fraud.
Could be a case of sour grapes that they didn’t get in sooner.
We shall see!
— The Option Specialist