Bitcoin price steadies as first futures contracts begin trading on Cboe exchange

Bitcoin price steadies as first futures contracts begin trading on Cboe exchange

Significant traffic around the futures launch triggered temporary delays and outages, with bitcoin maintaining a steady rise since the initial jump.

The volatility of bitcoin trading has been well chronicled in recent weeks.

"We'll see what goes on here", he said. On the same day, on Coinbase's GDAX exchange, prices zoomed up to nearly $20,000 from $16,000 in about 90 minutes, before sinking back down.

Blankfein became the latest boss of a major bank to criticize bitcoin, after JP Morgan's chief executive Jamie Dimon described it as fraud that would ultimately blow up. XBT/F8, the main bitcoin futures contract listed on the CBOE's trading platform, is being traded at over $18,210, with a premium of $1,960.

Hopes are that forks through the next 6-12 months can make the necessary improvements to Bitcoin's blockchain technology without any further offspring and, as the Bitcoin Futures markets are pointing out, current bets are for further gains through to January.

Bitcoin futures this morning surged to just shy of $18,000 before easing back with more than 2,000 contracts reportedly changing hands, which is a relatively small number of contracts when compared to other asset classes, but still higher than had been anticipated. The Futures Industry Association - a group of major banks, brokers and traders - said this month that contracts in the USA were rushed without enough consideration of the risks.

"We're in the early stages here, and there's not enough professional liquidity from the big market makers who can provide depth and hold in the movements", said Stephen Innes, head of trading for Asia Pacific at Oanda Corporation.

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It's been painful for investors stuck on the sidelines.

"Attract the hedge funds and other big money players and we will see a far more efficient and functioning marketplace".

The new derivatives contracts should thrust bitcoin more squarely into the realm of regulators, banks and institutional investors. The CBOE and CME are regulated, potentially assuaging those concerns.

Not everyone is happy with the expedited roll out.

This seems sensible - only this weekend, the price of one bitcoin surpassed United States dollars 18,000, and exchanges struggled to cope with demand for the coin.

Still, Interactive Brokers is offering its customers access to the futures, with greater restrictions.

As investors braced for the CBOE launch, some big United States banks, including JP Morgan Chase and Citigroup, will not immediately clear bitcoin trades for clients once investors start trading futures contracts, the Financial Times reported on Friday. "Right now we don't think it's a serious risk, but right now we're watching it".

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