FxWirePro: CBOE to unveil hot potatoes - Asset bubble or Carry over, BTC derivatives to have silver lining

Before we begin with this write-up, let’s just know as to how the price of Bitcoin (or any other cryptocurrencies) seems to have exceeded the price of gold briefly for the first time this week; however, this comparison is completely arbitrary.

In the current quarter, bitcoin prices almost surged whopping all-time highs of $11,891 mark (currently trading at 11,722.98 to be precise as per Coinbase), the bullish momentum remains intact. By this monstrous spikes, many analysts perceive this has created an asset bubble and bidding for a crash.

Whereas many investment banking giants have been aggressively exploring blockchain technology for financial transactions and trade infrastructure, the technology that is the base for cryptography.

Well, for now, the duos including the parent of the admired Chicago Mercantile Exchange and CBOE, are sprinting to clinch bitcoin prospects. Yes, the two US exchanges are dragging federal regulators into a realm skeptics call a fad and fraud.

The world's largest futures exchange, CME, publicized recently that it has finalized self-certification with the CFTC (Commodity Futures Trading Commission) to launch its first bitcoin futures contract on Dec. 18th. Ever since then the price movement of BTC has intensified and the momentum has been skyrocketed.

The development demonstrates how some big financial troupes are moving to co-opt the turbulence of cryptocurrency industry and lure more mainstream investors into the market, even before regulators have agreed on just what bitcoin is.

CBOE (Chicago Board Options Exchange) launch its bitcoin futures at 5:00 p.m. CT on Sunday, December 10, 2017, with a pre-opening period beginning at 4:15 p.m. CT. The first full day of trading will be Monday, December 11, 2017.

The launch of the futures will actually make the market healthier,” CBOE President Chris Concannon mentioned in an interview after the news broke last Friday. “It will create pricing equilibrium in the market. Clients who are holding bitcoin now have no way to hedge their risk. These products allow them to hedge, and to take opposing views. More importantly, it brings a wave of regulatory oversight.”

We at FxWirePro could also foresee the Bitcoin's price rises as the launch of bitcoin futures will pave the way toward establishing the digital currency as a legitimate asset avenue and launching bitcoin exchange-traded funds.