Bitcoin’s Second Futures Launch

The Chicago Mercantile Exchange, more commonly called CME, launched its bitcoin futures this weekend. It became the second exchange to offer futures trading for the incredibly popular cryptocurrency.

CBOE began its futures exchange just last week, and now that the second has launched, questions have raised.

Questions regarding whether these latest moves will stabilize the rising and falling values; or finally caused the bitcoin bubble to pop.

There was a small decrease seen today, with bitcoin falling by 1000 dollars within an hour this afternoon.

Today, it has stayed within a range of $15675 and $17709. At the time of writing, it is lingering around $16649.03. Even with this recent fall, for now, we do not see any indication that the futures will cause a significant decrease in the price.

The last time bitcoin fell by $1000 it broke another record within seven days. So, it’s hard to say where it will be this time next week.

We are still seeing the trickle-down effect of other cryptocurrencies enjoying a bump. So, as bitcoin cash shot up by 24.5%, it set a new record for itself.

Trading was less volatile than what was kicked off following the CBOE futures last week. This saw a 19% surge during day one of trading. Because of this, many were expecting something similar to occur today.

Additionally, Monday saw some very aggressive trading. This was a report by the founder and managing partner of Grace Hall, Joe Van Hecke, a trading firm based out of Chicago.

The main difference between the futures offered by CBOE and CME is what it represents. The CBOE contract is for one bitcoin. And, a CME contract is for five. Additionally, futures by CBOE settle with a daily price auction that Gemini releases. CME is using its reference rate.

This article is third-party analysis. It does not constitute any financial advice, which can only be provided by a certified financial adviser.

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