LedgerX Set to Beat Bakkt and Become First to Offer Physically Delivered Bitcoin Futures

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LedgerX Set to Beat Bakkt and Become First to Offer Physically Delivered Bitcoin Futures
When approved, LedgerX will offer Bitcoin, Bitcoin options and Bitcoin futures to retail customers through its new platform Omni.
LedgerX Set to Beat Bakkt and Become First to Offer Physically Delivered Bitcoin Futures

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Source: CoinSpeaker

CME unrivalled; sees BTC Futures up by 950% since close of March

The Bitcoin bull-run coupled with the competitor-less Bitcoin Futures market saw the Chicago Mercantile Exchange’s [CME] Bitcoin Futures surge by a whopping 950 percent over the past five days of the month.
As per exchange’s data, the CME saw a massive 22,542 contracts traded on its exchange on April 4, with each contract accounting for 5 BTC. This would mean that over $560 million, given Bitcoin’s price at over $5,000, was traded in the form of Bitcoin Futures in the period.
On April 1, Monday, prior to Bitcoin’s $5,000 ascendance, the number of contracts traded was a mere 2,162. A day later, when BTC rose by 15 percent and the collective market added over $20 billion overnight, the contracts increased by 455.73 percent to total 12,015 contracts.
An additional 5,050 contracts were traded on Wednesday. Bitcoin’s price continued to hover close to, and at times over $5,000, leading many to believe that this pump was not a temporary shock and hence the contracts, on April 4, reached 22,542, a massive 942.64 percent higher than the amount at the beginning of the month.
The Bitcoin futures market, as a whole, was going through a tumultuous time since the crypto-winter set in during the close of 2018. February 2019, saw the top exchanges, CBOE and CME record their lowest Bitcoin futures trading volume to date. After a successful early-2018, the derivatives market seemed to lose steam, as the price-decline began and eclipsed in February.
March 2019 also saw CBOE pull out of the XBT race by delisting their Bitcoin Futures for the same month. This exit was due to the falling prices of the coins in the market and the overwhelming drop of CBOE BTC Futures volume compared to that of CME.
CME is on the verge of facing stiff competition from other digital asset platforms, the most prominent of which is the highly anticipated Bakkt, spearheaded by the Intercontinental Exchange [ICE]. However, Bakkt has significant regulatory stalling and their launch has been delayed from January 2019 to later this year.
Other futures exchanges pegged to virtual currencies are Digital Currency Group and Polychain Capital, but Bakkt seems to be the overwhelming favorite.
In March, Terry Duffy, the Chairman of the CME, stated that stablecoins, backed by fiat currencies, would seek regulatory approval easier that decentralized currency. He added that the number of use-cases of cryptocurrencies should be expanded for it to be seen as a mode of payment rather than a mere volatile investment vehicle.
Most notably, Duffy shed light on the main cause of the regulatory obstacle for cryptocurrencies. He stated that the principle of limited supply, where only a certain number of Bitcoins can ever be created (21 million), is the main reason regulators stand in opposition to the decentralized currency market.
The post CME unrivalled; sees BTC Futures up by 950% since close of March appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report

Bitcoin [BTC] Futures were thought to be a snippet of the overarching cryptocurrency market, though meager in comparison to the larger spot market. A recent report from Bitwise Asset Management, the crypto-centric investment firm has stated otherwise.
In a March 20 report presented to the United States’ Securities and Exchange Commission [SEC], Bitwise analyzed the Chicago Mercantile Exchange [CME], and the Chicago Board Options Exchange, with ten prominent cryptocurrency exchanges’ in terms of their trade volume.
Prior to shedding light on their Futures versus Spot findings, it must be noted that the report revealed that 95 percent of the trading volume of unregulated exchanges were seemingly “fake and/or non-economic wash trading”.
Taking into account this disparity, the percentage of futures volume to their spot equivalent increases from 1.51 percent to 33.33 percent. Reported Spot volume totaled $6 billion, but after removing the “suspicious exchanges”, the actual volume recorded dropped to $273 million, in comparison to the futures market volume of $91 million.
Furthermore, the increase in futures’ volume as a percentage of the spot market has been steadily increasing. From November 2018 to January 2019, the futures market was just over 15 percent, and almost doubled in February 2019 to 33 percent. Since the Futures contracts were approved in December 2017, only on two occasions did the Futures volume, in comparison to the Spot market, shoot above 20 percent; this was in May and August 2018.
Futures Volume expressed as a percentage of their Spot Equivalent
In terms of their stand-alone trade volume, the CME and the CBOE are in good stead against the world’s top cryptocurrency exchanges. The daily volume the CME, which brings in $84.82 million, ranks second behind Binance’s $110.5 million and ahead of Bitfinex, which records $38.06 million in daily trade volume.
The CBOE also fairs well, taking the ninth spot on the ladder, ringing in $6.12 million in daily trade volume. Gemini takes the eight spot with $8.11 million and itBit caps off the top-10 with $5.58 million in daily volume. Notable, among the top-12, eight exchanges are registered within the United States.
Despite the CBOE’s comparative success against the spot exchanges’, it has not been performing well against its cross-town rival, the CME. This slump forced the CBOE to delist their Bitcoin Futures [XBT] for March 2019. However, the XBT futures that are yet to expire later in the year will not be off-loaded prematurely.
Bitwise also points out that the CME Futures Price tracks the Global Spot Price based on an arbitrage model. Given below is a chart attesting the same:
Arbitrage between the CME Futures price and the global Spot price
The post Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report appeared first on AMBCrypto.
Source: AMB Crypto

Bakkt’s Post-Money Valuation Stands At $740 Million Even Before Launch

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Bakkt’s Post-Money Valuation Stands At $740 Million Even Before Launch
Despite several delays in its launch, Bakkt’s valuation currently stands at $740 million with major financial institutions holding their stake in the platform.
Bakkt’s Post-Money Valuation Stands At $740 Million Even Before Launch

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Source: CoinSpeaker

CME’s Quick Respons to CBOE’s Bitcoin Futures Suspension Likely Capture Large Market

Well, CBOE discontinued Bitcoin futures in March, the rival CME has no plans to follow its footprints. However, CME is well performing the market, capturing the bitcoin futures potential that CBOE has temporarily restricted.
CME Has No Plans to Discontinue
To remind, CBOE (Chicago Board Options Exchange) was the first global exchange launching Bitcoin futures which were then followed by CME (Chicago Mercantile Exchange) in a similar time frame. As Coingape reported, CBOE released a notice on March 14, elaborating the reason behind why are they pondering bitcoin futures contract from their list of offers for the March 2019. It stated as follows;
“CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019. CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading.”
However, the observers have denied the claim CBOE made – in contrast, they analyzed the decision was taken as a result of low trading volumes. Crypto enthusiasts took to Twitter and stated that the CME’s bitcoin futures contract volume hurt the volume of CBOE. Although the current Bitcoin futures contract of CBOE remains available for trading until June. Furthermore, reports from CME official revealed that they have no plans to restrict their bitcoin futures contact.
CME didn’t share any comment on CBOE’s decision while a crypto research firm, Trade Block’s CEO discussed potential points or reasons behind the decision. Lanre Sarumi, CEO of Trade Block says that;
“Connecting to both CME and Cboe is expensive. If you are already trading other products on an exchange, then there is no new cost. If not, you must pay for connectivity, software license, market data, cross-connects etc. — all that just to trade one new product?”
Given all that, CBOE’s volume in Bitcoin futures is thin as compared to CME which stands quite stronger. As for now, CME continued to capture its existing market, even the portion that CBOE left for this month.

That’s cause Cboe bitcoin futures trading volumes have been getting crushed by CME. pic.twitter.com/4dpi9Tfuwg
— John Todaro (@JohnTodaro1) March 14, 2019

So readers, what’s your stake on CBOE’s decision and CME’s take on continuing the offering? Share your views with us
The post CME’s Quick Respons to CBOE’s Bitcoin Futures Suspension Likely Capture Large Market appeared first on Coingape.
Source: CoinGape

CBOE Future Exchange (CFE) Restricted Bitcoin Futures Temporarily

An official report revealed that a CBOE will restrict Bitcoin future listing in March because the exchange is on serious view to better approach derivatives for trading in the near future.
The latest announcement from Chicago Board Options Exchange (CBOE) goes on the record and published a report on why is the exchange putting brakes on Bitcoin future listing. The blog reads that;

“CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019. CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading.”

In addition, it is also revealed that already listed contracts will still in operation and will reportedly expire in June means that XBTM19 was the last contract which will remain in available for trading until June. It’s worth to note that the Bitcoin futures announcement bash of CBOE and CME group broke out in late 2017 when Bitcoin was on extreme peak. However, at press time, the value of BTC is not even half of what it was trading in December 2017 (which was almost US$20k). According to Coinmarketcap, Bitcoin is still battling and failing to reach $4000.

As the notice comes into the picture, crypto enthusiasts began analyzing the fact – as such on user on Twitter ‘John Todaro’ confidently stated the reason behind CBOE’s decision. In response to a similar context, John Todaro explained that CBOE’s bitcoin futures trading volumes have been getting crushed by CME.
 

That’s cause Cboe bitcoin futures trading volumes have been getting crushed by CME. pic.twitter.com/4dpi9Tfuwg
— John Todaro (@JohnTodaro1) March 14, 2019

So readers, what do you think about CBOE holding Bitcoin futures in March? share your opinion with us.
The post CBOE Future Exchange (CFE) Restricted Bitcoin Futures Temporarily appeared first on Coingape.
Source: CoinGape

CBOE Will No Longer List New Bitcoin Futures This March

CoinSpeaker
CBOE Will No Longer List New Bitcoin Futures This March
The Chicago Board Options Exchange will stop listing new Bitcoin futures on its platform this month as it needs to review its approaches in this sphere.
CBOE Will No Longer List New Bitcoin Futures This March

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Source: CoinSpeaker

Kraken Crypto Exchange Registers a Whopping $1 Billion In Futures Trading Volumes

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Kraken Crypto Exchange Registers a Whopping $1 Billion In Futures Trading Volumes

Crypto Facilities, a cryptocurrency futures provider (acquired by Kraken exchange), has witnessed an exponential growth in its user base and the futures trading volumes for some of the top cryptocurrencies.

Kraken Crypto Exchange Registers a Whopping $1 Billion In Futures Trading Volumes

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Source: CoinSpeaker

CME Bitcoin Futures Reports Record Volume, Is Institution’s Interest Rising?

On February 8th, Bitcoin has been changing hands at $3,400 only to take a surge to $3,662 level. For the next ten days, the Bitcoin price oscillated around $3,600 level. However, this week, Bitcoin took a hike of 10 percent and nearly reached $4k mark.
In tandem with the surge in Bitcoin price, the volume of Bitcoin Future on CME also took a significant hike as CME Group reported on Twitter,
“Surge in bitcoin price leads to record BTC futures volume on February 19 with over 18K contracts traded.”

The contract unit of CME Bitcoin futures is 5 Bitcoin and at $4,000 per Bitcoin rate, this amount to $360 million. CME Bitcoin futures are off to a good start as it beats the last record set on November 20, 2018.
Since the launch of futures contracts on December 17th, 2018, CME Group has had more than 21,000 accounts trading the Bitcoin futures contracts. This investment vehicle provides the investors with an opportunity to bet on the future price of Bitcoin and go long or short on it.
However, the volume has yet again taken a dip as Bitcoin price didn’t surge further rather went red as it has been trading at $3,957 with 24-hours loss of 0.72 percent, at press time, according to the data provided by Coinmarketcap. Meanwhile, the daily trading volume managed by the leading cryptocurrency is at $7.4 billion which has been at its highest on February 19th at $9.9 billion.
CME Bitcoin futures expire on the last Friday of the contract month at 4:00 p.m. London time. This means today it.e. February 22nd is the last trade date for the CME Bitcoin Future contracts.
 
The post CME Bitcoin Futures Reports Record Volume, Is Institution’s Interest Rising? appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Futures by the Chicago Mercantile Exchange Group reaches an all-time high in Q1 of 2019

Citing an internal e-mail, The Block reported that the Chicago Mercantile Exchange Group [CME Group] opened the doors for cryptocurrency investments and institutional investors in 2019 via its Bitcoin Futures.
Bitcoin Futures is a contract that will let customers bet on the future price of Bitcoin. CME Group first launched BTC futures in 2017 and according to the internal letter, the futures contract is taking off without a hitch. The internal e-mail read,
“Yesterday (Feb 19th) set a new record with 18,338 contracts traded, this is equivalent to 91,690 bitcoin or $360MN… Q1 2019 is off to a strong start, ADV has improved to 4,630 contracts (23,150 equivalent bitcoin), up ~13% from Q4 2018 while [open interest] rose to 4,076 contracts, an improvement of 21.5% over Q4 2018.”
In addition to the above, the CME Group has about 2,100 accounts and about 30 unique firms that have traded the contract. The e-mail stated,
“Institutional interest has gradually risen and the number of LOIHs (Large Open Interest Holders) has been holding steady around 43 holders since November. A LOIH is an entity that holds at least 25 BTC contracts.”
Further, CryptoCompare’s research for January 2019 shows a significant increase in the number of Bitcoin Futures contracts traded on CME when compared to its counterparts. The daily volumes increased by 20%, from $66.5M to $79.9M in January.
With the anticipation around the launch of Bakkt building up, it is expected that the prices of cryptocurrencies would shoot up. 2019 started with a rally, contrary to the general bearish trend that overtook the cryptocurrency market in 2018. In fact, the rally pushed the price of BTC to touch major resistance at $4000.
Another Bitcoin-related news that could affect the cryptoverse is the possible approval of the Bitcoin ETF proposal by the Securities and Exchange Commission [SEC].
The post Bitcoin [BTC] Futures by the Chicago Mercantile Exchange Group reaches an all-time high in Q1 of 2019 appeared first on AMBCrypto.
Source: AMB Crypto

Yet Another Bitcoin ETF submitted to SEC, But Mixed With Sovereign Debt and Bitcoin Futures

Submitted to the United States Securities and Exchange Commission on February 11, new bitcoin ETF by a subsidiary of Blockforce Capital is a new move. The newly filed proposal is called ‘Reality Shares Blockforce Global Currency Strategy ETF ’ which contains both – the sovereign debt instruments as well as Bitcoin futures.
ETF Beyond Bitcoin Futures
Reality Shares ETF is primarily a subsidiary of Blockforce capital, a US-based crypto firm. On Monday, the firm has filed a registration form with SEC to list its new ETF on NYSE Arca. According to the new proposal, the fund ’s portfolio involves futures traded on Cboe future exchange and the Chicago Mercantile Exchange. On top of these, it also includes sovereign debts and money market mutual funds.
The registration form reads that;
“The Fund expects to obtain exposure to Bitcoin Futures by investing up to 25% of its total assets, as measured at the end of every quarter of the Fund’s taxable year, in a wholly-owned and controlled Cayman Islands subsidiary. However, the Adviser will seek to limit the Subsidiary’s investment in Bitcoin Futures, so the Fund’s aggregate notional exposure to Bitcoin Futures is limited to 15% of the Fund’s net assets at the time of investment.”

Furthermore, the filing explains that out of 25 percent of its total assets, it would limit 15 percent of notional exposure to BTC allocation and on the other hand, 10 percent would be allocated to money market instruments.
15 [percent] of the Fund’s net assets representing notional exposure in Bitcoin Futures and (iii) 10 [percent] of the Fund’s net assets in Money Market Instruments for margin and/or cash management purposes, each as measured at the time of purchase (the ‘Target Portfolio’).”
What’s your stake on Reality Shares ETF filing with SEC? Do you think the proposal gets a green signal from regulators? Share your opinion with us. 
The post Yet Another Bitcoin ETF submitted to SEC, But Mixed With Sovereign Debt and Bitcoin Futures appeared first on Coingape.
Source: CoinGape

Bakkt Is Our ‘Moonshot Bet’ Says ICE CEO, Plans to Launch the Platform Later This Year

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Bakkt Is Our ‘Moonshot Bet’ Says ICE CEO, Plans to Launch the Platform Later This Year

ICE CEO Jeff Sprecher talked about how his team is working diligently for the launch of Bakkt and why he continues to hold utmost faith in Bitcoin.

Bakkt Is Our ‘Moonshot Bet’ Says ICE CEO, Plans to Launch the Platform Later This Year

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Source: CoinSpeaker

The Much-Anticipated Bakkt Platform Announces High-Ranking Vacancies

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The Much-Anticipated Bakkt Platform Announces High-Ranking Vacancies

The Bakkt platform is not letting multiple delays cringe their business strategies. They have announced vacant positions targeting to hire experienced and top-ranking executives.

The Much-Anticipated Bakkt Platform Announces High-Ranking Vacancies

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Source: CoinSpeaker

CBOE CEO Reveals What is Keeping Out Wall Street’s Billions From Cryptocurrency Market?

During the conference at a media luncheon on Jan 16, 2019, Ed Tilly, CEO of CBOE (Chicago Board Options Exchange) indicated what is hindering the Growth of Bitcoin Futures and keeping the Wall Street money out of the cryptocurrency market. According to him, Electronic Traded Notes (ETNs) is keeping out wall street’s billions.
Why ETNs are must for the success of Bitcoin Future?
Since Electronic Traded Notes can be denominated in smaller amounts, retail investors can easily access them. On the other hand, an institutional investor who would use Bitcoin futures needs to have a separate account set up to enter into the market. Tilly conveys the importance of ETN as the entry point for institutional investors. He says;
“The power of having that future there is also having an ETN that is more attractive to retail, and then institutions can lay off risk on the listed futures market”,
He asserted that both the products are critical to each other – it becomes a base for both market, wall street and main street. Nevertheless, he sees ETN is easily accessible to average investors and doesn’t have a higher barrier to enter into the market, whereas, Bitcoin futures would demand ‘significant amount of legwork’.
Absent that leg and introducing trackers or notes, I think we will be in this, ‘It trades every day, but it is not the story.
Govt. shutdown delaying the launch of Cryptocurrency products
He says that the regulators are always reluctant to approve ETNs and in tenure of a government closure, it is even more difficult to predict the launch of new products like Ether futures. Moreover, Coingape reported SEC’s latest order on freezing all pending proceeding doesn’t necessarily change the status of Bitcoin ETF Approval. Tilly says that ‘we cannot move for future products;
“I have two regulators that are not taking calls right now, that doesn’t mean there is nothing we are interested in. It means nothing is going to happen in this government shutdown.”
Furthermore, as far as the ETF’s are tied with the regulators, they’re left with a difficult question. With this he says;
“How do I protect the US customer from manipulation in a market that I don’t regulate?. You answer that question, you get your first ETN.”

The #ETF ’s Just Got Interesting, #SEC Freezing All Pending Proceedings As a Result of #GovtShutdown . Question is What happens to filed ETF’s in case SEC does not reply back before the deadline? @MatiGreenspan @APompliano @martin_schwarz @jchervinsky https://t.co/VzG16NtzRu
— CoinGape (@CoinGapeMedia) January 18, 2019

Regulators are Still Uncertain on Cryptocurrency regulations
The launch of first CBOE’s bitcoin futures in 2017 when the Bitcoin prices reached nearly $20000 was a historical entry and the open interest for the future counts 5306 contracts. However, after a year, the number of open interest declined to 3420 contracts. With this, Tilly also talks about the success behind CBOE’s Volatility Index (VIX) futures which significantly has 370,354 contracts in open network on Thursday, 17th Jan 2019. Consequently, he adds that there are a number of financial products in connection with the VIX contract.
“Why is VIX successful? Really calls upon the pool of liquidity in the S&P 500. Oh, and there is an institutional futures contract that is traded at the CME. There is a most successful ETF, SPDR. There are trackers and replicating notes that lever up that exposure. All of that works together.”
While appreciating VIX’s contract, he adds that the crypto market has also tried offering new financial products to the market but regulators are uncertain to approve. Tilly link the growth of bitcoin with the approval of ETFs by regulators however, we have seen SEC in the month of August 2018 has already rejected 9 ETFs including Winklevoss Bitcoin Trust.
 Seems like Govt. shutdown is affecting the crypto market and product launches are getting delayed. Further, the rumors that Trump might call for an emergency situation if true is not a very good sign for the cryptocurrency market. 
 
 
The post CBOE CEO Reveals What is Keeping Out Wall Street’s Billions From Cryptocurrency Market? appeared first on Coingape.
Source: CoinGape

Expert Opinion: Bitcoin Future Moves in Backwardation, No More Constantinople for Now

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights:

Bitcoin Futures moving in backwardation
Bitcoin Outlook based on Futures looks meek but still safe
Ethereum’s Constantinople upgrade gets delayed once again.

Bitcoin futures move in backwardation but its still safe
One of the joys of having a futures market is the ability to understand what investors are thinking about the future of the price and CBOE Bitcoin futures have been doing that for the crypto investors. But the recent data from CBOE, is not a pleasing sight as according to it we may not be at the bottom yet and there is further downside expected. Below is the chart that shows the contracts for the bitcoin futures on the CBOE are currently in backwardation, meaning that contracts with a later expiration are trading consecutively lower.

While this sight could create nervousness on a normal day but recently, we had some incidences in other markets which prove that these signs from future markets are not always correct. In October, oil futures were trading in contango (opposite of backwardation), but there was a steep drop of over 30% in prices for oil in spot markets.
Ethereum still awaits its Constantinople moment
While all eyes were fixated at block #7080000 on Ethereum’s blockchain yesterday night, which was to bring in the much-awaited Constantinople upgrade, the core dev team announced a that the upgrade is postponed. In a statement, the Ethereum Core Developers and Ethereum Security Community said that they decided to postpone the hard fork after security researchers identified a potential vulnerability in one of the software upgrades. This led to the plunging of Ethereum price’s dropping moments after the announcement was made.

While there has been a bit of a recovery in prices this morning the event was really scary. While it was good that they caught the bug before going live but the fact that it came within 30 hours of the upgrade is a bit nerve-wracking. These things do happen, virtually all major platforms including Windows, Android, and Apple Operating systems, have seen critical bugs before. Though it would be possible to release a patch, fork the network again, and return to normal, that kind of process could in itself have done irreparable damage.
The post Expert Opinion: Bitcoin Future Moves in Backwardation, No More Constantinople for Now appeared first on Coingape.
Source: CoinGape