Merely three hours after the Chicago Board Options Exchange (CBOE) started their bitcoin futures trading, their platform was inaccessible. The volume of people on the website and the demand was too high for the trading platform to be functional. Bitcoin processed around $400,000 of trades in only half an hour!
The US Commodities and Futures Trading Commission (CFTC) is on board and has authorized Bitcoin futures, an options exchange, and derivatives. $1 million has already been settled with LedgerX, throughout the opening week. During the next few weeks, investors and firms will be using their massive capital to invest in the Bitcoin market. Since hedge funds are only able to invest a few hundred million dollars due to compliances, in the short run billions will be invested in Bitcoin.
Analysts believe that there may be a chance that shorting of Bitcoin will occur because of Bitcoin futures and CBOE. Redundant shorting will cause the price of Bitcoin to decline dramatically. However, there have been many institutions and investors that have been compensating premiums to make Bitcoin investments. Bitcoin futures are already up by 20% since its launch. XBT/F8, which is known as the primary Bitcoin futures contract on CBOE, is being traded over $18,000 with a premium of about $1,960.
As we have seen so far with the achievement of Bitcoin futures on CBOE exchange, there is obvious demand for Bitcoin from the conventional financial markets and the demand will only rise at a rampant rate. Bitcoin futures in the market will continue to strengthen Bitcoin as an asset and will boost its value and stability. December 18th marks another big day for Bitcoin futures. CME Group, which is the second largest exchange, will be participating in Bitcoin futures.