Futures are derivatives-financial securities that depend on the value of an underlying asset and the expectation on the future price trend.
No circuit breakers were activated during Monday trading, according to CBOE.
Image source: CBOE delayed quotes dashboard as of 3:53 PM. As of early afternoon trading in NY, 3,951 one-month contracts had changed hands, meaning around $73.1 million had been notionally traded.
The launch of Bitcoin futures at CBOE is set to be followed by its cross-town rival, the Chicago Mercantile Exchange (CME) Group, which plans to launch its own version of Bitcoin futures trading on December 18. The dominance of BTC across the broader cryptocurrency markets declined in recent days to a low of 59 percent, when compared to 67 percent of the total crypto market cap last Friday.
Bitcoin futures are here. CME Group is expected to launch contracts on december 18. The exchanges assured the CFTC that the new products were compliant with the self-certification process rules, and the CFTC refrained from halting the self-certification. The futures are based on the auction price of Bitcoin in USA dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs and brothers Cameron and Tyler Winklevoss. Bitcoin futures maturing in January were at $18,450, with just 1,416 contracts traded as of late afternoon in NY, compared with 3,956 contracts on the first day.
Cameron and Tyler Winklevoss, thought to be among the largest holders of bitcoin, said the advent of futures is just the beginning of a phase of greater acceptance for the cryptocurrency that is often derided as a bubble.
Bitcoin was arguably the most important cryptocurrency even before being exchange-listed, but there are a host of others.
You can't do a bitcoin futures trade in India. In theory, the successful launch of the Bitcoin contract should add confidence in the market and in the broad asset class.
And while it has slipped somewhat from the high it hit earlier today, the price of bitcoin has remained above $16,000, trading at roughly $16,680 at time of publication, according to data from CoinDesk's Bitcoin Price Index.
"Anyone, especially a professional trading outfit, would be insane to actually short sell this bull market", said Nick Spanos, founder of Bitcoin Center NYC.
Yet, despite this, Thomas Peterffy, the founder and chairman of broker-dealer Interactive Brokers Group, also wrote a letter to the CFTC expressing his concerns about clearing bitcoin futures through the same clearing houses as other derivatives.
JP Morgan CEO Jamie Dimon has made it very clear that he believes Bitcoin is a fraud. Goldman Sachs "will act in an agency capacity" and "won't serve as a market-maker or build inventory in the derivatives".