CME Group, the largest derivatives marketplace, took its Bitcoin Futures contract (root code BTC) live this past Sunday and there has been never-ending speculation that these contracts (along with the already trading Cboe BTC contract released a week ago) would allow institutional traders to bet on the future price of Bitcoin (specifically the shorts!).
The JAN 2018 contract opened around $20k with a high of 20865 (currently trading at 19115) with around 1,015 trades as of this writing.
Bringing USD Cash Settled contracts to Bitcoin adds to the legitimization of the Cryptocurrency as a trade-able asset of sorts.
But has any of this influenced the price of Bitcoin over the past 16 hours? (or week if you take into account the Cboe trades). Looking at the chart below, you can say Bitcoin’s volatility has actually slowed down instead of ramping up. This appears to be some sort of proof that the contracts are doing what they’re supposed to do: bring down the wild volatility BTC is currently known for.
Or is the real purpose of these new futures to allow the professionals to cash in on the Bitcoin craze?
I bet you’re thinking what I’m thinking!