Bitcoin enters the mainstream

Rage Review : With the launch of Bitcoin futures contracts, this cryptocurrency has entered the mainstream financial circle. The Bitcoin futures contracts launched by CBOE Global Markets officially began trading on December 10, 2017 (Sunday), indicating that the financial community has accepted Bitcoin. In addition, Bitcoin futures will greatly promote the advent of Bitcoin ETFs. In general, the launch of Bitcoin futures contracts will bring many benefits to the cryptocurrency ecosystem and is conducive to the development of this emerging market.

Translation: Ina

Bitcoin futures could bring a flood of money to the cryptocurrency market

Bitcoin made its debut in the mainstream financial world under the ticker symbol XBT. Many predicted that this historic event would bring more participants and capital to the cryptocurrency market. For example, financial institutions and their large amounts of capital could now participate in Bitcoin trading. Institutional investors welcomed the arrival of such futures because it provided a regulated framework for trading cryptocurrencies. In addition, Bitcoin futures increased market efficiency.

CBOE said:

“Bitcoin futures offer many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. XBTSM futures provide participants with a centralized market to trade on their views on the price of Bitcoin, gain exposure to the price of Bitcoin or hedge existing Bitcoin positions.”

Bitcoin derivatives open the door to ETFs

Bitcoin is volatile by nature, and the arrival of futures is likely to further exacerbate this volatility. In fact, the cryptocurrency market began to get nervous hours before CBOE launched its Bitcoin futures contracts, as evidenced by the sharp fluctuations in Bitcoin prices. The price of Bitcoin dropped from more than $18,000 on December 8 to around $13,000 on December 10, and then rose again to the current price of more than $15,000.

Such futures bring new dynamics to the cryptocurrency ecosystem. For example, market regulators will increase their scrutiny. In addition, traders can now short sell cryptocurrencies. Another possibility is that since Bitcoin futures appear in a regulated environment, the SEC may approve the launch of a Bitcoin ETF.

Spencer Bogart, head of research at Blockchain Capital, told ETF.com:

“The SEC rejected a Bitcoin EFT listing earlier this year because it needed to see the Bitcoin spot market become more regulated or see a regulated and functioning derivatives ecosystem.”

The launch of Bitcoin futures is a strong indication that the financial industry has finally accepted Bitcoin. Therefore, if the Bitcoin bubble does not burst immediately as many predict, it will flourish and provide incredible investment opportunities for financial institutions.