bitcoin future trading starts Sunday

[Dead Money]

I own zero crypto currency.....no faith in smoke signals...I dust my precious metals once a month, they will always be intact.

I think its great gubberments are shitting their pants because they have no control over bitcoin and the instant millionaires it has spawned.

I may be wrong, but I see exchange trading futures as an attempt to control bitcoin;
they are gubberment regulated exchanges....

They have used future trading exchanges for decades to f**k precious metals with massive naked puts, effectively using paper trades to squash the price.

As we speak, China, India, and Russia are creating their own gold exchange,based on physical possession, they see thru the absolute B.S.



Enjoy your current bitcoin lofty prices......the futures market cometh....


A R T I C L E below...


"Major exchanges are racing to be the first to launch bitcoin futures Major exchanges race to become first to launch bitcoin futures


Cboe Global Markets is leaping ahead of CME in an effort to become the first to launch bitcoin futures.

Cboe announced Monday it is launching futures trading in the cryptocurrency beginning Sunday, making the Chicago-based exchange the first to give investors a new way to wager on, and against, the booming new market.

"Given the unprecedented interest in bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure," Ed Tilly, chairman and CEO of Cboe Global Markets, said in a release.

The Cboe Futures Exchange plans to offer trading in bitcoin futures beginning 6 p.m. ET Sunday. Trading will be free through December, according to the release.

In a race by major exchanges to offer bitcoin derivatives products, CME announced Friday it would launch bitcoin futures Dec. 18.

The Commodity Futures Trading Commission said Friday it would allow the CME and Cboe to launch bitcoin contracts. Cantor Exchange also self-certified a new contract for bitcoin binary options, the commission said.

Cboe's bitcoin futures will trade under the ticker symbol "XBT" and will be cash-settled against the auction price from Gemini Trust, the digital currency exchange founded by twins Cameron and Tyler Winklevoss.

In contrast, the CME bitcoin futures contract will be cash-settled against an index that's currently weighted to four bitcoin exchanges: Bitstamp, GDAX, itBit and Kraken.

The launch of bitcoin futures by prominent exchanges is a significant step toward the legitimization of the digital currency that was once the focus of a handful of tech entrepreneurs and often associated with illegal activity in online marketplaces.

Bitcoin futures will allow institutional investors to buy into the digital currency trend, and likely pave the way for a bitcoin exchange-traded fund in the U.S., analysts say. The digital currency is prone to sharp gains and losses of several hundred dollars in only a few hours, and enthusiasts say bitcoin futures will help investors feel more comfortable with buying bitcoin since they can use futures to protect against major losses.

"The prospective introduction of bitcoin futures has the potential to elevate cryptocurrencies to an emerging asset class," Nikolaos Panigirtzoglou, a global markets strategist at JPMorgan, said Friday.

Bitcoin has surged more than 1,000 percent this year to above $11,000, helped by increased interest from institutional investors. Twenty-four hour trading volume in bitcoin was $6.6 billion, according to CoinMarketCap."

 

[Dead Money]

Good clarification on exchange listing bitcoin...

Good clarification on exchange listing bitcoin...

Looks like me, the whales are entering the casino, shud be interesting.....



Authored by Tom Luongo,

I?ve been asked by a few subscribers to further discuss the potential effect of the major exchanges starting up futures trading in Bitcoin. Last month the CME Group and the CBOE ? Chicago Board of Exchange ? announced they would begin trading futures contracts in Bitcoin due to popular demand.



image courtesy of CoinTelegraph

The SEC fast-tracked approval, because, what the big banks want the big banks get. This is called ?regulatory capture? for short. Trading is due to begin on December 10th.

Now there are a lot of issues here but the main thing is that these are cash-settled contracts. This means that, for all intents and purposes, these are dollar-based bets on where the price of Bitcoin is going in the future.

And dollars, unlike Bitcoin, are in nearly infinite supply. I?ve heard arguments that the recent price rise in Bitcoin is partly because the CME and CBOE are building inventory. That?s pure disinformation. What inventory are they building when they are never going to settle the trades in Bitcoin?

Futures Imperfect
Futures markets are a function of coordinating supply of an asset with time. If you anticipate the future need for a few million barrels of oil and want to lock in your future liability to obtain said oil, you buy some oil futures which will deliver you that oil on by that date.

By contrast, a cash-settled contract is, in effect, no different than a CFD offered by a forex broker. A CFD is a contract for difference which are simply bets on the movement in price of something. They are divorced from the underlying asset and do not affect its supply or demand like an asset-settled futures contract is.

CFD?s are really no different than betting on a football game or who will win the election. It is a pure derivative of the underlying asset and has no relation whatsoever to the trading behavior of the asset itself.

Except, of course, that traders who are looking for any edge they can get will use that data to influence their decisions. And so, as a secondary or tertiary effect, the structure of CFD markets have an effect on the market of the underlying asset.

In short, the tail wags the dog.

The question on everyone?s mind is, how much of an effect this will be.

The analogue for stocks is the VIX ? the volatility index. The VIX is its own market which itself is a prime indicator of where the market is headed. The VIX is manipulated all day every day in the equity markets to support whatever narrative the political class, Wall St. and the central banks want us to believe.

The VIX used to be a small market. But, in today?s yield-starved, central-bank-coordinated world, where price discovery is suppressed in the name of market ?stability,? the VIX now IS the equity market.

And this is the mechanism by which a cash-settled futures market can be used to gain control over the price of Bitcoin. It will bring absolutely zero liquidity to the Bitcoin environment natively.

It will simply make high-frequency scam-trading and spoofing in Bitcoin an official part of the market through the creation of a near-infinite supply of dollars. And the issuers of that supply will use those price moves to push or pull the Bitcoin market itself to fit the needs of the banks and exchanges whose business is most threatened by Bitcoin?s existence.

The Blockchain Threat
When you look around the blockchain space you can very easily see that there are a number of projects attempting to marginalize the existing financial trading infrastructure.

They are building blockchain analogues which require no third party to settle and clear trades or provide liquidity pools. From cross-chain atomic swaps to distributed exchanges with direct fiat conversion, the cryptocurrency community is becoming focused on replacing the current system with one less subject to manipulation through central bank largess.

The central banks themselves know they are under attack at an existential level. And it is why the major ones will never truly embrace digital assets in any substantive way.

In my first article for Crypto-News.net I cover why the Federal Reserve would never create a crypto-dollar.

Bitcoin is a digital analogue to gold with respect to the Federal Reserve. So, the Fed, which props up confidence in the dollar by marginalizing gold, will never create a Bitcoin-derivative. Doing that would state categorically it doesn?t have faith in its own currency. Why create a crypto-dollar when the real dollar (itself just as much a digital asset as Bitcoin) works just fine.
We have historical precedence for this with gold. And I remember the crowing in the gold community when the SPDR Gold ETF (NYSE:GLD) was formed. All the same liquidity and ?bringing the big boys in? arguments were made and yet, buried deep in the prospectus was the poison pill about how the ETF dealt with settlement and what assets it actually held ? futures contracts, not gold.

And is it any surprise that with the rise of GLD the leverage on the gold futures platforms around the world has risen to astronomical levels?

So, don?t think for a minute that the CME or the CBOE are implementing Bitcoin futures for our benefit or simply because they want a cut of the action. No, they are doing so because they see the existential threat to their business and are moving to defend it by becoming part of the action.

The Way Forward
But, there is a silver lining to this.

Bitcoin is not an asset where the existing power structure can coordinate pricing worldwide 24/7. And Bitcoin trades, much to the consternation of everyone in power, 24/7.

Gold is easily manipulated (up and down) because like all other assets trading on official exchanges, gold closes on Friday afternoon and doesn?t start up again until Sunday afternoon. That?s two days of policy coordination talks, headlines, bad-bank settlements and the rest to ensure that it, like any other systemically-important asset, does not spasm in price and cost anyone important too much money.

Blockchains operate all day, everyday. And there truly is no reason why they should ever stop trading. So, the future exchanges, if they are planning on trying to control the Bitcoin price through their derivatives, better be subtle about it.

Because what they bring to the table first and foremost is their imprimatur of professionalism. These are supposed to be the most trusted, most sophisticated market making platforms in the world.

And their entry into this space is supposed to professionalize the way Bitcoin is traded and price discovery achieved. And without 24/7 exchange coverage they better behave themselves or the market will lose confidence in the product very quickly as arbitrage effects will destroy their credibility.

Because, remember, once the blockchain-equivalent platforms are up and stable there will be a whole new level of trust added to the financial system. There is absolutely zero reason why a blockchain based, coin-settled futures market can?t compete with the CME Group or the CBOE.

At which point we enter into a whole different regime of price discovery.

 

[brianwil2727]

thanks for this post

thanks for this post

Looks like me, the whales are entering the casino, shud be interesting.....



Authored by Tom Luongo,

I?ve been asked by a few subscribers to further discuss the potential effect of the major exchanges starting up futures trading in Bitcoin. Last month the CME Group and bitcoin futures explained the CBOE ? Chicago Board of Exchange ? announced they would begin trading futures contracts in Bitcoin due to popular demand.



image courtesy of CoinTelegraph

The SEC fast-tracked approval, because, what the big banks want the big banks get. This is called ?regulatory capture? for short. Trading is due to begin on December 10th.

Now there are a lot of issues here but the main thing is that these are cash-settled contracts. This means that, for all intents and purposes, these are dollar-based bets on where the price of Bitcoin is going in the future.

And dollars, unlike Bitcoin, are in nearly infinite supply. I?ve heard arguments that the recent price rise in Bitcoin is partly because the CME and CBOE are building inventory. That?s pure disinformation. What inventory are they building when they are never going to settle the trades in Bitcoin?

Futures Imperfect
Futures markets are a function of coordinating supply of an asset with time. If you anticipate the future need for a few million barrels of oil and want to lock in your future liability to obtain said oil, you buy some oil futures which will deliver you that oil on by that date.

By contrast, a cash-settled contract is, in effect, no different than a CFD offered by a forex broker. A CFD is a contract for difference which are simply bets on the movement in price of something. They are divorced from the underlying asset and do not affect its supply or demand like an asset-settled futures contract is.

CFD?s are really no different than betting on a football game or who will win the election. It is a pure derivative of the underlying asset and has no relation whatsoever to the trading behavior of the asset itself.

Except, of course, that traders who are looking for any edge they can get will use that data to influence their decisions. And so, as a secondary or tertiary effect, the structure of CFD markets have an effect on the market of the underlying asset.

In short, the tail wags the dog.

The question on everyone?s mind is, how much of an effect this will be.

The analogue for stocks is the VIX ? the volatility index. The VIX is its own market which itself is a prime indicator of where the market is headed. The VIX is manipulated all day every day in the equity markets to support whatever narrative the political class, Wall St. and the central banks want us to believe.

The VIX used to be a small market. But, in today?s yield-starved, central-bank-coordinated world, where price discovery is suppressed in the name of market ?stability,? the VIX now IS the equity market.

And this is the mechanism by which a cash-settled futures market can be used to gain control over the price of Bitcoin. It will bring absolutely zero liquidity to the Bitcoin environment natively.

It will simply make high-frequency scam-trading and spoofing in Bitcoin an official part of the market through the creation of a near-infinite supply of dollars. And the issuers of that supply will use those price moves to push or pull the Bitcoin market itself to fit the needs of the banks and exchanges whose business is most threatened by Bitcoin?s existence.

The Blockchain Threat
When you look around the blockchain space you can very easily see that there are a number of projects attempting to marginalize the existing financial trading infrastructure.

They are building blockchain analogues which require no third party to settle and clear trades or provide liquidity pools. From cross-chain atomic swaps to distributed exchanges with direct fiat conversion, the cryptocurrency community is becoming focused on replacing the current system with one less subject to manipulation through central bank largess.

The central banks themselves know they are under attack at an existential level. And it is why the major ones will never truly embrace digital assets in any substantive way.

In my first article for Crypto-News.net I cover why the Federal Reserve would never create a crypto-dollar.

Bitcoin is a digital analogue to gold with respect to the Federal Reserve. So, the Fed, which props up confidence in the dollar by marginalizing gold, will never create a Bitcoin-derivative. Doing that would state categorically it doesn?t have faith in its own currency. Why create a crypto-dollar when the real dollar (itself just as much a digital asset as Bitcoin) works just fine.
We have historical precedence for this with gold. And I remember the crowing in the gold community when the SPDR Gold ETF (NYSE:GLD) was formed. All the same liquidity and ?bringing the big boys in? arguments were made and yet, buried deep in the prospectus was the poison pill about how the ETF dealt with settlement and what assets it actually held ? futures contracts, not gold.

And is it any surprise that with the rise of GLD the leverage on the gold futures platforms around the world has risen to astronomical levels?

So, don?t think for a minute that the CME or the CBOE are implementing Bitcoin futures for our benefit or simply because they want a cut of the action. No, they are doing so because they see the existential threat to their business and are moving to defend it by becoming part of the action.

The Way Forward
But, there is a silver lining to this.

Bitcoin is not an asset where the existing power structure can coordinate pricing worldwide 24/7. And Bitcoin trades, much to the consternation of everyone in power, 24/7.

Gold is easily manipulated (up and down) because like all other assets trading on official exchanges, gold closes on Friday afternoon and doesn?t start up again until Sunday afternoon. That?s two days of policy coordination talks, headlines, bad-bank settlements and the rest to ensure that it, like any other systemically-important asset, does not spasm in price and cost anyone important too much money.

Blockchains operate all day, everyday. And there truly is no reason why they should ever stop trading. So, the future exchanges, if they are planning on trying to control the Bitcoin price through their derivatives, better be subtle about it.

Because what they bring to the table first and foremost is their imprimatur of professionalism. These are supposed to be the most trusted, most sophisticated market making platforms in the world.

And their entry into this space is supposed to professionalize the way Bitcoin is traded and price discovery achieved. And without 24/7 exchange coverage they better behave themselves or the market will lose confidence in the product very quickly as arbitrage effects will destroy their credibility.

Because, remember, once the blockchain-equivalent platforms are up and stable there will be a whole new level of trust added to the financial system. There is absolutely zero reason why a blockchain based, coin-settled futures market can?t compete with the CME Group or the CBOE.

At which point we enter into a whole different regime of price discovery.

Thanks this was really helpful.