The largest options exchange in the global finance sector, CME Group has officially announced that its bitcoin futures trading platform will launch on December 10.
With the launch of CME’s bitcoin futures exchange on December 10, analysts are expecting that the bitcoin price may exceed $10,000.
The largest options exchange in the global finance sector, CME Group has officially announced that its bitcoin futures trading platform will launch on December 10. With the launch of CME's bitcoin futures exchange, analysts are expecting the price of bitcoin to exceed $10,000.
As such many well-known financial analysts like, RT's Max Keiser and billionaire hedge fund investor Mike Novogratz have predicted the price of bitcoin to reach the $10,000 mark in the short-term.
The US Commodities and Futures Trading Commission (CFTC), LedgerX this week approved bitcoin derivatives, options, futures exchange, and processed its first bitcoin options contract.
The buyer pegged its option contract at $10,000, which would allow the buyer to profit from the bitcoin investment only if the price of bitcoin achieves the $10,000 mark by December 28. The market has shown confidence in the short and mid-term future of bitcoin, since some of the world's largest hedge funds like the $95 billion Man Group have declared to invest in bitcoin upon the launch of the CME bitcoin futures exchange by December 10.
It is only recognized institutional investors that are not allowed to invest directly in bitcoin who can utilize Futures and options exchanges operated by LedgerX, CME Group, and CBOE. Thus, the most options contracts are made by large-scale retail investors who expect that the price of bitcoin can reach $10,000 in the short-term.
Paul Chou, the LedgerX CEO, told Coindesk, "There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018."
According to Coinbase CEO, Brian Armstrong, "Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates, there is $10B of institutional money waiting on the sidelines to invest in digital currency today." He told that around $10 billion in institutional money is waiting to be invested in bitcoin and other cryptocurrencies.
Investors who want to bet against bitcoin's substantial price gains can do so beginning in mid-December. Moreover, independent bitcoin brokerages and exchanges such as Coinbase have launched custodial platforms for institutional and retail investors to address the growing demand for bitcoin from the traditional financial market and institutional investors.
The value of bitcoin will increase exponentially in the short-term as the price of bitcoin has already surpassed the $8,000 mark. The price of bitcoin will likely surge towards $10,000 if as planned, the large-scale hedge funds and institutional investors invest in bitcoin in December.
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