The latest approach to get in on the latest rage in Bitcoin came on Sunday, together with futures of this cryptocurrency which has caught Wall Street by storm, beginning trading of the controversial new coin for the very first time. But what is it? Is Bitcoin a currency, an asset, an instrument? The jury is still out, as banks, institutions, and governments try to catch up on their understanding of this new technology, at the core of which is called the Blockchain.
The very first Bitcoin prospective, XBT, transactions kicked off at 6pm (2300 GMT) on CBOE Global Markets Inc’s CBOE Futures Exchange.
Bitcoin January futures were $15,940 (11,905.3 lbs), together with 398 contracts exchanged, after having opened at $15,460.
The futures contract are cash-settled contracts dependent on the auction cost of Bitcoin in U.S. dollars on the Gemini Exchange, that will be owned and run by virtual money entrepreneurs Cameron and Tyler Winklevoss.
On Sunday, Bitcoin was up 2.62% at $14,990 on the Luxembourg-based Bitstamp exchange. On the Gemini Exchange, it was at $15,600.
Will these futures impact the actual Bitcoin price, traded on entirely different markets, seemingly under minimal, if any, regulations? Proponents of Bitcoin say futures are irrelevant to their decentralized markets, as they tout Bitcoins ability to be free of alleged “market manipulations”. Time will tell as we also will be shortly seeing the rollout of Bitcoin on the CME, together the two may or may not have an impact on actual Bitcoin market prices or volatility.
Whatever does happen, one thing is certain, this new and exciting new prospect has benefits but also many pitfalls. Be sure to educate yourself thoroughly before making any type of investment decision.
Source: Reuters
