Selling in bitcoin futures has begun on the CBOE. The open has been quiet.
At 6:35 PM ET, 341 a barrels had traded, according to one market maker, with each lot representing one bitcoin. The last choice of words was $16,000, which is a premium to the spot price on the Gemini exchange, which was $15,680.
Doug Cifu, CEO of Virtu, one of diverse market makers in the Cboe bitcoin futures, said he is posting prays and offers for the futures based on the spot price on the Gemini exchange. As the start of to be to comes trading approached, the spot priced swung wildly.
Shortly previously the start of futures trading, at 5:55 PM ET, the spot price on Gemini was $14,610. At 6:03 PM, three pint-sizes after the start of futures trading, the price rocketed to $15,900.
Given the artifice price swings in bitcoin—the price on the Gemini exchange has doubled in to a month—interest in bitcoin futures has been high. Whether the start of approaches will reduce volatility in bitcoin is still unclear.
Cifu is not floored by the relatively quiet start. “It’s a young market, just figuring out its sea columns. It will find its level, like every market does.”
Nor is it unentangled if futures trading will make bitcoin any more respectable. What is free is that it is a further step toward (limited) regulation, and at least rip offs parts of the bitcoin universe more transparent.
“This is your commencement opportunity to take a bitcoin deriviative and put it on a centrally cleared exchange that has transparency,” JJ Kinahan, Chief Derivatives Strategist at AmeriTrade, leaked me.
Cifu definitely believes more transparency will help: “I transfer not have participated in this if it was not on a regulated exchange.”