Institutional Interest in Bitcoin Futures On A High Says ICE Executive

In an interview with The Edge Markets, ICE Vice-President Jennifer Ilkiw said that a larger number of institutional investors are taking interest in trading Bitcoin Futures. 
Exchanges Lack Risk Management Procedures
Ilkiw said that institutional investors are unable to trade the same on existing exchanges as they continue to be unregulated entities. Furthermore, many of the exchanges lack risk management procedures and comprehensive market surveillance and supervision system to spot market manipulation.
“We have a lot of high-frequency traders who are interested in it. There are also institutional fund managers and brokers calling us to say that they want to trade bitcoin futures,” 
In March, the CBOE had announced that it was reconsidering its approach of offering Bitcoin futures contracts.
ICE is Trying to Fill Gaps
A CNBC news report then suggested that said the CBOE’s decision to stop offering the product could possibly be due to a drop in demand in the retail market last year. This was when Bitcoin prices crashed to about US$13,000 from a peak of about US$20,000.
“In general, there is a lack of institutional infrastructure and platforms to trade [bitcoin] with. That is why we are trying to fill the gaps,”
said Ilkiw.
She then mentioned that this was primarily the reason why ICE, together with other investors, set up the Bakkt Trust Company LLC to offer institutional investors Bitcoin custody services and “physically delivered” Bitcoin Futures contracts
These are offered through a partnership between Bakkt, ICE Futures US. ICE Clear US.  The former provides futures and options trading whereas the latter handles confirmation, settlement, and delivery of transactions.  
She further added that Bakkt bitcoin futures contracts allow investors to trade one Bitcoin per contract. Also, users can trade up to 100,000 contracts. Bakkt offers investors two types of bitcoin futures contracts – daily and monthly futures contracts. The settlement date for its monthly contracts is on the third Wednesday of the month and the delivery of bitcoins takes two days. 
ICE Offers Adequate Protection Measures
Furthermore, Ilkiw suggested that ICE has sound protection measures in place as it has a large pool of investors and the amount of money involved in a single case of fraud could be huge. 
“The existing exchanges are relatively small and may only offer cryptocurrency futures contracts to retail investors. An investor may lose a lot of money trading with them, but the counterparties will still receive their money while the exchange continues to operate,” 
she added.
Future Prospects
When questioned on if major exchanges would adopt a ready approach before getting involved with Bitcoin, she said that ICE launched Bakkt to position itself for the future trends of digital assets, including other asset-backed and non-asset-backed cryptocurrencies.
Will Bitcoin Futures continue to create the same hype in the near future as well? Will we see more exchanges rolling out Futures products? Let us know, what you think in the comments below!
The post Institutional Interest in Bitcoin Futures On A High Says ICE Executive appeared first on Coingape.
Source: CoinGape

We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive

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We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive
Ahead of the SEC’s Bitcoin ETF deadline, Bitwise’s director is optimistic for a positive ruling. According to him, the market has grown significantly, making it stable enough to allay the SEC’s fears.
We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive

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Source: CoinSpeaker

CME Group Seeks CFTC Permission to Double Its Bitcoin Futures Trading Cap

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CME Group Seeks CFTC Permission to Double Its Bitcoin Futures Trading Cap
Citing massive open positions and interest for its Bitcoin futures contracts, CME Group requested CFTC to double the limit of monthly contracts traded.
CME Group Seeks CFTC Permission to Double Its Bitcoin Futures Trading Cap

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Source: CoinSpeaker

Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month

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Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month
As ICE Futures Exchange opens its Bitcoin Futures interest, CME concurrently soars in what appears to be a four day all-time high in a row.
Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month

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Source: CoinSpeaker

Bitcoin Futures Will No Longer Be Traded On CBOE

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Bitcoin Futures Will No Longer Be Traded On CBOE
CBOE stops trading Bitcoin futures starting from June 19, while CME has recently enjoyed a record high volume of 33,700 contracts for cryptocurrency derivatives.
Bitcoin Futures Will No Longer Be Traded On CBOE

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Source: CoinSpeaker

Nasdaq Adding Brave New Coin’s Index for XRP to Global Data Service

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Nasdaq Adding Brave New Coin’s Index for XRP to Global Data Service
Stock exchange operator Nasdaq has fulfilled its promise adding one more cryptocurrency index – this time for the world’s third-largest cryptocurrency, XRP.
Nasdaq Adding Brave New Coin’s Index for XRP to Global Data Service

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Source: CoinSpeaker

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

While CBOE Head Down, CME Bitcoin Futures Cunningly Capitalized Massive Market Volume

Bitcoin’s new volume influenced the futures market as well – according to reports, CME bitcoin futures sees massive growth of 22,542 contracts traded on April 04. On the other hand, CBOE – ahead of bitcoin bull run – announced to CBOE halts its bitcoin futures,
Following the steep decline since few months, Bitcoin has recently gripped to $5k and still running on the rising graph but with slight bobbling around here and there. However, Bitcoin’s recent surge did help futures contract at CME Group Inc show budding graph. Reportedly, these contracts hit 22,542 contracts which is equivalent to 112,710 Bitcoins. Indeed, CME mentioned that most of the futures trading volume on April 04, when it hits the highest record, happened during Asian hours – with almost 12,634 contracts.

While one enjoys massive market volume with bitcoin’s new value – on the other hand, rival CBOE let it traders know that there would no future contracts on bitcoin. As Coingape reported earlier, CBOE’s Global Markets Inc. (Chicago Board Operation Exchange), has already suspended its upcoming future contract citing a reason to improve the approach towards cryptocurrency derivatives. The absence of CBOE’s futures contracts apparently led people to move towards CME (which since early days outperforming CBOE futures contract) and capture the mainstream attention.
According to data provided by Coinmarketcap, Bitcoin trades at the value $5193 against US Dollar and has declined a bit with 1.64 percent over the past 24 hours. Moreover, the average trading volume counts $91,584,724,667.

Ideally, CME is larger than CBOE and both platforms had announced their futures contract on Bitcoin in late 2017 when Bitcoin was soaring to all-time high volume. Moreover, the presence of bitcoin futures on CME and CBOE let institutional investors participate in the crypto economy – meantime, the crypto market captures investors via traditional platforms like CME and CBOE.
What do you think about bitcoin’s surging volume and future contract? Share your thoughts with us.
The post While CBOE Head Down, CME Bitcoin Futures Cunningly Capitalized Massive Market Volume appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] trading volume sees continued growth on institutional front: Diar Report

Bitcoin [BTC] has seen a massive spike in not just its price, but also in institutional momentum. As an April 8 report by Diar stated, the institutional BTC products have continued rising against their US exchange equivalent for the fourth month in a row.
Diar charted the month-on-month institutional BTC products as a percentage of the total Bitcoin trading volume and saw a notable trend. After plummeting to 10 percent in December 2018, the share has been on a rise in the new year.
Increasing by 5 percent in January alone, the month of April saw the percentage share standing at 19 percent of the total volume, well above even October 2018. The highest level of the institutional products share was witnessed in July 2018, when the aforementioned market was almost one-fourth of the global volume.
Source: Diar
Bitcoin Futures have also seen a variance in their share with the Chicago Mercantile Exchange [CME] now leading the charge as the Chicago Board of Options Exchange [CBOE] decided to delist their future contracts last month. Grayscale Bitcoin Investment Trust [GBTC], which also trades on the OTC market, has seen a decline as well.
GBTC began the previous year by holding 50 percent of the market share among the three players. By August, 2018, its share fell under 20 percent and despite rising above 30 percent towards the start of the current year, it now stands at 24 percent. CBOE holds 12 percent, while CME, seemingly unrivaled, climbed to over 60 percent of the total market share.
Source: Diar
The large-cap digital assets fund fronted by Grayscale has seen a significant reshuffle in its composition for this quarter. Released last week, the crypto-asset management firm stated that they reduced the share of Ethereum [ETH] and XRP while increasing Litecoin [LTC] and Bitcoin Cash [BCH].
Diar also looked at the demand in terms of cryptocurrency market volume categorized between virtual currency exchanges and their institutional counterparts. As was expected, the decline in prices has not resulted in an increase in volume.
However, the only silver lining from the crypto-winter is that the volume distribution has been fairly consistent. For example, the BTC trade volume via institutional products as a percentage to that of the exchanges was 15.11 percent in January 2018, and a year later, it edged up marginally to 17.74 percent.
Overall, BTC trading volume took a massive hit in 2018, dropping from $30 billion at the beginning of the year to well under $5 billion by October 2018.
Source: Diar
It should be noted that exchange-reported trading volume may not concur with the verified figure. As Bitwise Asset Management pointed out in their March report to the SEC, 95 percent of volume data reported by exchanges is fake or non-economic in nature; the same was mentioned by Diar in their recent report.
The post Bitcoin [BTC] trading volume sees continued growth on institutional front: Diar Report appeared first on AMBCrypto.
Source: AMB Crypto

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

U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May

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U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May
The U.S. securities regulator continues to remain firm on its decision of not approving the Bitcoin ETF anytime soon. Next window for ETF decision now in May 2019.
U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May

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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

Bitcoin [BTC] price discovery is going to happen in an end-to-end regulated ecosystem, says Bakkt COO

In the recent FIA Boca 2019 event, one of the topics discussed was the price discovery of Bitcoin. Representatives of Coinbase, ErisX, Bakkt, CME Group, and Cboe Global Markets, spoke about where the current price discovery occurred and where it would occur in the near future.
Adam White, the COO of Bakkt, began the discussion by stating that price discovery “is very fundamental” with respect to what Bakkt was bringing to the market. He went on to say that the current price discovery primarily occurs in cash markets. He added that the present market was bifurcated between traditional OTC players like Circle and Genesis, and markets like Coinbase, Gemini and Kraken. He said,
“I think those markets are really important. We wouldn’t be sitting out today if they hadn’t come about in the past five to six years. They’ve actually grown this market to one that’s meaningful and shows a lot of promise.”
White further stated that Bakkt “fundamentally believed” that price discovery was going to occur in an end-to-end regulated ecosystem, adding that Bakkt was trying to bring exactly this to the market. He said,
“Bakkt is providing the custodial services that allows ICE futures and ICE clear to trade or facilitate trading in a physically delivered product. And, we believe having that product traded on a regulated exchange for the first time is really going to be important.”
He stated that price discovery was going to switch from the cash market to the futures market, adding that Bakkt would hopefully be a “core product” for the discovery.
Further, John Deters, Head of Strategies and Multi-Asset Solutions at Cboe Global Markets, stated that the price discovery “kind of comes” from different places. He added that the platform’s Bitcoin futures product settled on another platform, Gemini, one of the leading cryptocurrency exchanges in the US. He said,
“That auction event is one of the greatest liquidity events in the global Bitcoin market at least those that are disclosed and its because the people are participating in the futures product and want to get a convergent price. So, where’s the price coming from? The futures traders or the cash traders, it’s kind of hard to say.”
Adam White stated that one of the problems that their customers have is that cash markets were “not regulated exchanges”. He added that these markets had custodial aspects of storing Bitcoin with a BitLicense or a trust, adding that they were absolutely “regulated and rightful”. He said,
“But we actually look at the matching, the center limit of the order book, those pieces aren’t. And, I do think that it is keeping some version of institutional capital on the sidelines saying ‘look we’re going to be ready to enter when we see this end-to-end kind of regulated product’ and I think this is great for the industry to see it happen.”
The post Bitcoin [BTC] price discovery is going to happen in an end-to-end regulated ecosystem, says Bakkt COO appeared first on AMBCrypto.
Source: AMB Crypto

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