CME Group Bitcoin Futures Launched …
CME Group Bitcoin Futures Started Above $ 20,000 But Dropped Immediately
Bitcoin futures started trading on the Chicago Mercantile Exchange (CME Group) that night. Recall that a week earlier, a similar instrument was launched by the Chicago Board Options Exchange (CBOE).
Trading in January contracts began at $ 20,600, however, unlike the CBOE futures launch day, when the rate was steadily growing, the price began to fall almost immediately and reached a low at $ 18,345, after which it rose slightly and at the time of publication is at $ 19 215.
CBOE futures behaved similarly.
The underlying cryptocurrency market couldn’t help but react to this event, and after hitting a record high above $ 20,000 this Sunday, bitcoin began to move downward, in the process reaching a low of $ 18,355.
Trading volumes on CME, to the surprise of some experts, turned out to be small. Ahead of the launch of the new tool, ED Vice President&F Man Capital Markets Brooks Dudley told Bloomberg: “CME Bitcoin contracts may not be the first, but they own a larger clearing service. Not all market participants got the opportunity to short Bitcoin in CBOE futures. We allow our clients to take advantage of long and short positions “.
As JPMorgan previously reported, the launch of futures on two major exchanges at once has created competition in this market. Settlements under the contracts of both sites are carried out in fiat. While CME requires 35% to 47% collateral from its clients for speculative accounts, CBOE requirements are slightly higher at 44%.
Otherwise, there are only nominal differences between the two contracts, which in practice do not matter. CME futures will be settled on the average of multiple exchanges (Bitstamp, GDAX, itBit and Kraken), while CBOE uses one Gemini exchange.
Photo: Yuri Shebalius
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