Bitcoin Futures

Cboe Global Markets Inc. revealed today that it is to begin its bitcoin futures trading on the 10th December, beating fellow Chicago-based CME Group at becoming the first regulated exchange to trade the digital currency.

After receiving approval from the U.S. Commodities Futures Trading Commission (CTFC), in a press release, Ed Tilly, Chairman and Chief Executive Officer of Cboe Global Markets, said:

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. We are committed to encouraging fairness and liquidity in the bitcoin market. To promote this, we will initially offer XBT futures trading for free.

Bitcoin Futures Exchanges are coming in the near future

Similar to CME, Cboe’s bitcoin futures will be cash-settled; however, they will be based on the Gemini Trust, the digital currency exchange founded by Cameron and Tyler Winklevoss. On the other hand, CME will base their prices on four cryptocurrency exchanges, including Kraken, itBit, Bitstamp, and GDAX.

According to the release, trading will commence at 5:00 p.m. central time on Sunday, and Monday, 11th December, will be the first full day of trading. Through December, trading will be free, the release adds.

In a race to offer bitcoin derivative products via major exchanges, Terry Duffy, CME Group Chairman and CEO, revealed at the beginning of the month that it is to start trading on the 18th December.

At the time, Duffy said:

We are pleased to bring Bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities.

The news of Cboe and CME receiving approval from the CFTC means that it could attract more investors to the digital currency market. Not only that, but it will be a step closer to legitimising the cryptocurrency, which is often linked to criminal activities.

Furthermore, at present, bitcoin is bought and sold on exchanges that remain unregulated. Many, however, feel uncomfortable with this despite the fact that market prices are continuing to soar to record highs.

Just last week, billionaire investor Mark Cuban stated that the approval of the bitcoin futures on major exchanges will be seen as ‘generally positive‘ on the digital currency, stating:

What they charge is critical. Transaction costs are relatively high for BTC. If this pushes transaction costs lower, it will be a benefit to the BTC market.

Featured image from Shutterstock.

crypto review

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

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.

 

High Low
Price $9823.43 $9461.97
Market Cap $164 104 327 522 $158 054 166 175

 

Ethereum

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.

 

High Low
Price $496.40 | 0.05105570 BTC $468.49 | 0.0497 BTC
Market Cap $49 357 212 129 $44 966 409 692

 

Bitcoin Cash

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.

 

High Low
Price $1717.61 | 0.178 BTC $1895.66 | 0.164495 BTC
Market Cap $28 889 799 688 $26 848 515 322