By Guest Writer
The Chicago Board Options Exchange (CBOE) (www.cboe.com ) propelled its Bitcoin futures get, a monetary item attached to the Bitcoin, that enables speculators to wager on whether its cost will rise or fall. Bitcoin futures are now available for trading on the Cboe Futures Exchange, LLC (CFE). CFE launched trading in Cboe bitcoin futures on December 10 under the ticker symbol “XBT”.
The inauguration of trading was done at 5 p.m. U.S. central time on the world’s biggest options and futures exchange, now investors will be able to bet on or against bitcoin without actually buying or selling it. The begin of exchanging at 5 pm CST overpowered the CBOE site.
WHAT DO BITCOIN FUTURES DO?
XBT futures provide a way for you to buy and sell bitcoin futures in a highly regulated marketplace nearly 24 hours a day, five days per week. This gives you the flexibility to invest and divest at the optimal time for your specific trading strategy.
Cryptocurrency experts think that the futures product will help stabilize the price of bitcoin, as well as hasten its adoption by The Wall Street.
Others think it’s a sign regulator are easing their view on the digital currency, which could lead to approval for future products like a bitcoin ETF.
It could also revive another effort to bring liquidity and mainstream respectability to the cryptocurrency as well as the development of a bitcoin exchange-traded fund (ETF). In this way, futures trading opens the door to “short sellers” that bet on downward moves in asset prices.
This will bring many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. These futures provide a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions.
The CBOE futures don’t involve actual bitcoin.Actually, The securities that will track the price of bitcoin on Gemini, one of the larger bitcoin exchanges. Earlier this year, the SEC rejected a proposed ETF by Search Results Gemini, the bitcoin exchange founded by Cameron and Tyler Winklevoss, among other concerns, the regulator cited the lack of other regulated bitcoin products.
What so ever the matter we can say the futures listings in CBOE will give Bitcoin “legitimacy.It will recognize that it’s an asset you can trade”.