The bitcoin price stormed past $11,000 on Friday following the announcements that two U.S. derivatives exchanges have received regulatory approval to list bitcoin futures contracts within the near future.
Friday morning, CME and CBOE, both headquartered in Chicago, separately announced that they had received the green light from the Commodity Futures Trading Commission (CFTC) to create and list bitcoin futures products on their trading platforms. CME’s futures will launch December 18, while CBOE has yet to set a target release date.
The announcements flipped an ignition switch in the markets, and traders initiated a buying frenzy. Shaking off concern that it was in the midst of a retrace or on the back side of a bubble cycle, the bitcoin price leaped to a two-day high of $11,161 on bitcoin exchange Bitfinex.
Neither CME nor CBOE’s bitcoin futures will have a direct impact on the asset itself because the contracts will be settled with cash rather than bitcoins.
However, most analysts expect that Wall Street firms will feel more comfortable wading into the cryptocurrency ecosystem once exchange-traded products are available. Investors also believe that Wall Street capital will eventually flow into the underlying markets themselves, raising the price of bitcoin and other cryptocurrencies. Eventually, an exchange may even launch a futures contract that is settled with the asset itself, rather than cash.
Barry Silbert, chief executive of the Digital Currency Group, told CNBC’s “Squawk Box” that he anticipates that the launch of bitcoin futures will also usher in the first Bitcoin ETF, an investment vehicle that will make bitcoin more palatable to retail investors who want exposure to the price movement of bitcoin without the risk of holding the asset directly.
“I think it is going to enable finally the approval of bitcoin ETFs, and other digital currency ETFs, which is game changing,” he said.
At the time of writing, bitcoin was trading at a global average of $11,151, according to the BlockExplorer Bitcoin Price Index, giving the world’s most prominent cryptocurrency a $186 billion mark cap.
According to coinmarketcap the current cryptocurrency market cap sits at around $300 billion, 500 million, with bitcoin making up 53.5% of the total market cap. Overnight Bitcoin crossed the $10k USD barrier.
Below is a summary of the top three currencies on coinmarketcap at time of writing
Bitcoin, while still in the green, seems to have slowed down its rapid price increase that began early last saturday, lagging behind that price jump was an increase in trading volume that seems to have also subsided this morning, with the price hovering around $9640, with highs of $9823 and lows of $9460. At time of writing the price was $9675.73, with a market cap of $160 billion and trading volume staying stable at around $6 billion all day.
|Market Cap||$164 104 327 522||$158 054 166 175|
Ethereum is in the green today, 3% against the US dollar and 0.35% against bitcoin. Market cap is at $45 billion and 4 million BTC, with highs of $493.40 and 0.0510 BTC, lows of $468.49 and 0.489 BTC. With the price sitting at $480.10 and 0.04937 BTC at time of writing, with volume sitting around $1.4 billion and 147 thousand BTC. Ethereum’s charts are looking a bit more volatile than the bitcoin chart for the same time frame today.
|Price||$496.40 | 0.05105570 BTC||$468.49 | 0.0497 BTC|
|Market Cap||$49 357 212 129||$44 966 409 692|
Bitcoin Cash is 5.9% in the red today against the US dollar and 6.59 in the red against bitcoin, with a market cap of $27.6 billion and 2.8 million BTC. Around 09:30 today it dropped to $1607 and 0.170 BTC, recovering a bit to $1681 and 0.173 BTC, then falling further again. At time of writing the price was at $1613.42 and 0.1658 BTC with a trade volume of $1.5 billion and 161 thousand BTC. The chart is somewhat smooth with a downwards gradient.
|Price||$1717.61 | 0.178 BTC||$1895.66 | 0.164495 BTC|
|Market Cap||$28 889 799 688||$26 848 515 322|