CBOE Halts Bitcoin Futures: Big Step Behind or A Leap Forward?


Bitcoin

CBOE Halts Bitcoin Futures: Big Step Behind or A Leap Forward?

CBOE will no longer list Bitcoin Futures on its exchange after the current ones expire in June 2019. CBOE Global Markets was the first institutional platform to launch Bitcoin Futures in December 2017. CME Group Inc. is the other derivates marketplace that will continue to offer Bitcoin Futures contract.

A Leap Forward

In a chat with Melissa Lee with the CNBC, Brian Kelly, Tim Seymour, Guy Adami, and Steve Grasso noted that this has come as a positive piece of news contrary to popular belief. As Bitcoin Futures began when Bitcoin was at the top indicating retail and sellers demand of the product. The halting decision now could suggest a bottom.

Bitcoin Chart
Bitcoin/USD chart (Q4 2017 – Q1 2019)

Moreover, with the development of custody platforms, pending ETF approvals, Fidelity and Bakkt Investment Platforms the need for Bitcoin Futures has diminished considerably. The CBOE also might look forward to replacing the futures contract with an actual Exchange Traded Fund.

According to the founder and CEO of cryptocurrency investment firm BKCM LLC, Brian Kelly,

“Retail and sellers are exhasted… and in the $3000 was the great time to buy bitcoin.
Other avenues of custody has become better.. less of a need for these futures contracts at this point.”

This might come as a bad piece of news for many as it implies that there is one less institutional platform to bet on Bitcoin. Nevertheless, CBOE itself has filed for an ETF application that is under review with the SEC. Moreover, CME continues to provide the contracts. Hence, it might not affect the supply for futures traders. Moreover, it is indicative of a big move ahead in Bitcoin.

 

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CBOE Halts Bitcoin Futures: Big Step Behind or A Leap Forward?
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CBOE Halts Bitcoin Futures: Big Step Behind or A Leap Forward?
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CBOE will no longer list Bitcoin Futures on its exchange after the current ones expire in June 2019. CBOE Global Markets was the first institutional platform to launch Bitcoin Futures in December 2017. CME Group Inc. is the other derivates marketplace that will still continue to offer Bitcoin Futures contract. 
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Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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Nivesh Rustgi 537 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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