Traders brace for volatile bitcoin futures launch

The newest way to bet on bitcoin will arrive when futures of the cryptocurrency that has taken Wall Street by a storm begin trading.

The first bitcoin future trades are set to kick off at 6pm New York time on Sunday (10AM AEDT Monday) on CBOE Global Markets Inc’s CBOE Futures Exchange.

This has given an extra kick to the cryptocurrency’s scorching run this year. Bitcoin’s price soared so far this month, but it has made sharp moves in both directions in recent days, falling by almost a fifth on Friday after surging more than 40 per cent in the previous 48 hours.

On Sunday, bitcoin was up about 3 per cent at $US15,000 on the Luxembourg-based Bitstamp exchange. On the Gemini Exchange, it was at $US15,650.

Bitcoin fans appear excited about the prospect of an exchange-listed and regulated product and the ability to bet on its price swings without having to sign up for a digital wallet. Others, however, caution that risks remain for investors and possibly even the clearing organizations underpinning the trades.

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.

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Source: Traders brace for volatile bitcoin futures launch – 9Finance