Jun 10, · CBOE stops trading Bitcoin futures starting from June 19, while CME has recently enjoyed a record high volume of 33, contracts for cryptocurrency derivatives. CBOE is basing its bitcoin futures contract on pricing on Gemini, the cryptocurrency exchange founded by the Winklevoss twins. A number of concerns hang over Gemini including low volumes on the exchange and system outages. According to CoinMarketCap, the . 2 days ago · Cboe Considers Future of Bitcoin Futures In a statement on March 14, the exchange revealed: “CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March CFE is assessing its approach with respect to how it plans to .
Cboe futures bitcoin tradingCBOE Stops Offering Bitcoin Futures (And That's Probably a Good Thing) - bitcoinlife24.de
Share Tweet Send Share. Prev Next. For updates and exclusive offers enter your email below. Tony Spilotro 2 hours ago. Yashu Gola 9 hours ago. Cole Petersen 24 hours ago. It did not rule out the possibility of other cryptocurrency derivatives, though, and "is assessing" its approach for how it plans to continue. In the meantime, active bitcoin contracts are still available to trade, but the last of them expires in June.
Futures are a way for investors to bet on whether the price of a commodity — in this case bitcoin — will rise or fall. The contracts expire each month, meaning an exchange has to continuously list more if it wants to keep the market alive. The move by Cboe highlights cooling enthusiasm for bitcoin after an all-out mania led by retail investors in Prices have come crashing down by 80 percent since.
Cboe was not the only exchange to try to capitalize on the bitcoin frenzy. CBOE is basing its bitcoin futures contract on pricing on Gemini, the cryptocurrency exchange founded by the Winklevoss twins. A number of concerns hang over Gemini including low volumes on the exchange and system outages.
Some trading firms have expressed concerns over an entire market for futures being based on data from one exchange with thin volumes as it raises questions of liquidity and liability to market manipulation. Since the volume is low and bitcoin is unregulated it is conceivable.
The last thing we want is another Libor-type scandal. Libor is the scandal in which banks rigged the price of the London Interbank Offered Rate to benefit their positions in the derivatives market.
One of the major upshots of being an unregulated market operating on largely unregistered exchanges is the possibility that it could all just be a long con. Most high-volume exchanges lack even basic oversight, much less carry out third-party audits. So if it is a con, we may only find out when it all comes crashing down.
Goldman Sachs said it would clear futures contracts for certain clients, and is also considering whether to become a market maker to help build liquidity. Futures brokers fear that they will bear the brunt of the risk associated with bitcoin futures, because the margin that backstops the contract is placed in a clearing house.
Clearing houses stand between two parties in a futures trade, managing the risk to the rest of the market if one side should default. They are mutually funded in part by banks to guard against the failure of their largest members. Banks are worried about managing the risk associated with the contracts, particularly given the manic swings seen in recent weeks.