It's a step forward for the bitcoin, which has soared this year despite concerns that the surge of investor interest has transformed it from a new-age currency into just the latest speculative bubble.
The futures are cash-settled contracts based on the auction price of bitcoin in United States dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss. Cash-settled futures contracts like the XBT are like bets on where the price of bitcoin is headed.
The futures are cash-settled contracts based on the auction price of bitcoin in US dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss. It increased 8 percent in less than 10 minutes after trading began.
The craze for cryptocurrencies entered a new chapter on Monday as bitcoin futures rocketed by one-fifth of their value at a hotly anticipated launch, while Asian shares climbed amid optimism about global growth.
Many larger Wall Street brokerages and clearinghouses, including Goldman Sachs and JPMorgan Chase, are either not allowing customers to trade bitcoin futures or only allowing select clients to do so.
With the amount of leverage taken on by Bitcoin investors on the rise, a futures market induced collapse would certainly be damaging to the evolution of the markets over the near-term, though the gains made by early investors, who continue to hold on to their Bitcoins, and liquidity in the exchanges are expected to be soften the effects of any material decline in value.More news: Actually, Leonardo da Vinci's Salvator Mundi Will Be Acquired By Abu Dhabi
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Traders are excited about getting access to bitcoin, but investors should understand that buying bitcoin futures is not the same as investing in bitcoin.
In a major step towards legitimising the virtual currency, the Bitcoin has begun trading on a major USA exchange.
There have been other attempts to bring bitcoin investing into the mainstream.
Cboe's rival exchange CME will start trading its own futures on December 18 but will use a composite of several bitcoin prices across a handful of exchanges.
The launch also caused CBOE's site to crash, due to a massive surge in traffic.