This Sunday the CME Group has started Bitcoin futures trading offering. Will CME Group Bitcoin Futures launch Push Bitcoin Higher?
CME Group Bitcoin Futures Trading is Live
After the launch, the CME Bitcoin futures have been trading today with a bullish signal. In fact, the sale price for the front-month contract has opened above $20,000. The futures fell 3.8 percent to $18,760 hours after opening at $20,650 and rising slightly.
The long-awaited product has appeared on the market after the Chicago-based derivatives exchange operator has revealed its plans for dedicated Bitcoin offerings.
CME Group Bitcoin futures launch has taken place at 6 pm EST. During that time, the opening price for upcoming month expiration contract has stood at $20,650. This accounts for $1,150 gain over the last price on CME's reference rate ($19,500).
As for the amount of sold contracts, there were more than 600 January 2018 contracts purchased during the first hour of trading, according to the CME data. CME Group’s website has indicated that there were one February and two March 2018 contracts sold. Moreover, there were four June-expiring contracts purchased on CME, which traded at $21265 at the time of publishing.
Will CME Group Bitcoin Futures launch Push Bitcoin Higher?
After the CME Group Bitcoin Futures launch, contracts have continued trading at a premium against Bitcoin price. As of now, the price of one Bitcoin stands at $19,196.00. Last week, CBOE Bitcoin futures contracts have kicked-in, causing Bitcoin prices to surge. In addition, with other institutional organizations, such as Nasdaq and Wall Street's Cantor Fitzgerald, planning to launch their own Bitcoin futures, Bitcoin supports have high hopes for the price of this cryptocurrency.
Yet, the CME Group Bitcoin futures launch has indicated signs of market fatigue. Moreover, unlike with CBOE Bitcoin futures opening, the website of CME Group did not experience any connection issues associated with big traffic.
Nevertheless, the launch of CME Group Bitcoin futures comes as a step forward in regards to the establishment of Bitcoin as a legitimate asset class.
What is the difference between CME and CBOE Bitcoin Futures?
There is a key difference between the Bitcoin futures from CBOE and CME. The CBOE contract stands for one Bitcoin, while a CME Group Bitcoin futures contract represents five Bitcoins.
Moreover, the CBOE settles its futures in oppose to the daily price from Gemini. The CME Bitcoin futures are prices against its own Bitcoin reference rate, which gathers data from several cryptocurrency exchanges.
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