Bitcoin, the most popular cryptocurrency in the world, saw its futures spike by up to 26 percent during their Cboe Global Markets exchange debut session. The surges brought on two temporary halts in trading for the purpose of easing the market.
Cboe’s Website Traffic Exploded
The initial volume was considerably higher than dealers had predicted. At the same time, traffic surged on the Cboe website to the point that it brought on delays and even temporary outages. Cboe underscored that the site’s challenges did not have any effect on its trading systems. Bitcoin’s spot price increased.
Bitcoin futures managed to become an even more volatile investment than the cryptocurrency itself. The futures’ launch on a regulated exchange represents a turning point for Bitcoin, which has seen astounding gains this year, to the point that they have drawn significant attention from virtually every kind of investor. The Cboe contracts may find that they will soon have comparable types of offerings from Nasdaq and CME Group. That would simplify the process of mainstream investing on the increase or decrease in the cryptocurrency’s value.
A Whole New Bitcoin World
Until now, Bitcoin wagers have, for the most part, been restricted to platforms providing little oversight – or none at all. This has presented a barrier for more traditional types of investor as institutional money managers have shied away from this ultra-nonstandard format. Moreover, many people have kept a distance from those forums due to the exposure to market breakdowns or cybercriminal hacks. There were approximately 20 actively participating trading firms, said Ed Tilly, Cboe chairperson when discussing the subject with Bloomberg.
Bitcoin futures with a January expiry jumped by as much as 18 percent, reaching $17,710 at one point, following the opening at $15,000 and 3,561 traded contracts.
Initially, there had been concerns that short selling would adversely affect the Bitcoin price. However, that did not appear to be the case as Bitcoin traders seemed comfortable with futures, leading to a relatively smooth debut.
This was an impressive start for Bitcoin futures following a year in which the Chinese government has cracked down against the cryptocurrency, and the CEO of JPMorgan Chase, Jamie Dimon labeled Bitcoin as a “fraud.”