Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision

July 12, 2018
74 Views



Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision

Everyone knows that bitcoin and cryptocurrency prices have been on a steady decline since the last month of 2017. While digital asset spot prices have been quite volatile, bitcoin futures products provided by two of the world’s largest derivatives exchanges, Cboe and CME Group, have seen a steady increase in trade volume and more liquidity within these markets. Furthermore, Cboe is hoping to launch a bitcoin-based exchange-traded-fund (ETF) and the US Securities Exchange Commission will decide on the fate of this new product on August 10.

Also Read: Bitcoin in Brief Thursday: Crypto Phones, Spy Games, Binance CEO vs Vitalik  

While Spot Prices Decline Bitcoin-Based Futures Contracts Have Been Steadily Increasing

Cryptocurrency spot prices have been in a slump over the past two quarters of 2018 but rumor on the street is institutional interest in cryptocurrency custody and regulated investment vehicles is picking up speed. Even though market sentiment has been bearish, futures contracts sold by Cboe and CME Group have increased significantly during the second quarter of 2018. Right now, on July 12, there have been 1199 contracts filled so far and products for the month of August are adding up today as well. Cboe has been selling between 2500-18,000 bitcoin futures contracts per day.

Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision
CME Group sees a spike in futures contract volumes on July 5.

CME Group’s bitcoin futures volumes are usually less than Cboe’s trade volume but contracts sold on Globex have also spiked. Today CME has 2634 contracts sold for July and products for August and September are seeing a small increment of sales. CME Group’s contracts jumped to 6739 on July 5, marking a new record for CME’s bitcoin derivatives market. However, it’s still not even close to the record-setting 18,000+ contracts Cboe recorded on April 25. With the steady trend of investors getting into bitcoin-based futures products, Cboe hopes these derivatives markets will pave the way towards a bitcoin ETF.

Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision
Cboe bitcoin futures touched 6,121 contracts on July 5.

The Fate of the Cboe Bitcoin ETF Will be Decided August 10 — Will the Futures Markets Launch Affect the SEC’s Decision?

On July 9, Cboe announced it has filed an application with the US Securities and Exchange Commission (SEC) so it can sell a bitcoin-based ETF backed by the Vaneck Solidx Bitcoin Trust. The SEC is seeking public opinion concerning the ETF application in order to help guide their decision on whether or not they will approve a bitcoin ETF this time around. Since the first announcement this past Monday, the SEC has revealed the fate of the ETF will be decided on August 10.

Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision
The SEC will decide on Cboe’s bitcoin ETF application on August 10, 2018.

“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process,” explained the Vaneck CEO Jan van Eck this week.  

A properly constructed, physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.

The SEC may also look into how well the current bitcoin futures markets have done so far, and if there were any issues during the launch of those derivatives products. With the bitcoin futures volume spikes, there’s been a lot of action within these regulated market settings and investors seem to want these products — And some people think a bitcoin ETF should naturally follow.

What do you think about the bitcoin futures trade volumes and current interest in these products? Do you think that the SEC will approve Cboe’s ETF application based on their prior experience with these futures markets? Let us know your thoughts on this subject in the comment section below.


Images via Shutterstock, Cboe, and CME Group.  


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision appeared first on Bitcoin News.



Source link

You may be interested

Litecoin [LTC] creator tells its users to look beyond speculation, propagate adoption
Litecoin News
7 views
Litecoin News
7 views

Litecoin [LTC] creator tells its users to look beyond speculation, propagate adoption

Editor - September 26, 2018

[ad_1] Litecoin [LTC] creator tells its users to look beyond speculation, propagate adoption  AMBCryptoLitecoin Gemini listing nothing short than gold for…

Australia’s Science Agency Claims Breakthrough in Global Blockchain Test
Blockchain News
10 views
Blockchain News
10 views

Australia’s Science Agency Claims Breakthrough in Global Blockchain Test

Editor - September 26, 2018

[ad_1] Australia's Science Agency Claims Breakthrough in Global Blockchain Test  CoindeskFork-free, energy efficient Red Belly Blockchain validated in global test  CIO AustraliaTrial…

Another Institutional Trading Platform Ready to Launch Ethereum Futures
Ethereum News
10 views
Ethereum News
10 views

Another Institutional Trading Platform Ready to Launch Ethereum Futures

Editor - September 26, 2018

[ad_1] Another Institutional Trading Platform Ready to Launch Ethereum Futures  Ethereum World News (blog)Cryptocurrency Derivatives Platform LedgerX Will Launch Ether Options:…

Leave a Comment

Your email address will not be published.