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

As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?

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As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?
Bitcoin price surprises the market by slipping below $10K levels on August 28. Crytpo analysts trace Bitcoin whales moving massive BTC tokens ahead this week.
As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?

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Source: CoinSpeaker

Here’s Why US CFTC’s Bitcoin Futures Drops Below Previous Weeks

The latest data of Bitcoin futures by the US Commodity Futures Trading Commission (CFTC) on Friday reveals that speculative trading activities on Bitcoin futures have experienced a decline in comparison to the previous weeks.
Bitcoin Futures Experienced Weaker Speculative Trading
Many states that the result in a drop of speculative trading activities of the Bitcoin futures is the reflection of dropping the price of the cryptocurrency. It’s to remind that Bitcoin and other leading cryptocurrencies saw a negative week. Nevertheless, it’s quietly hovering the green mark on July 27, 2019.
At the time of writing, the crowning cryptocurrency Bitcoin is trading with a quick spike of 1.42 percent but still under $10k figure. Other altcoins are also showing a brief surge in their 24 hours trading volume.
BTC Price | Coinmarketcap
The week ending on July 23 quickly highlights that market speculators (or non-commercial investors) reduced their long and short positions. It states that they held a net short position of 1222 Bitcoin futures contracts. In comparison, Hedgers (Commercial traders) also held a net short position of 26 contracts.
To make it even more clear, speculator attempts to find their profit ratio for the asset’s price volatility and hedgers try to reduce or “hedge” the risk created citing price fluctuations during the holding period of the digital assets.
Beside the volatile crypto market, a prominent economist and traders connect this drop with Bitmex’s bitcoin volume. Economist Alex Kruger on July 23, notes that according to exchange data, Bitmex bitcoin volume saw a 42 percent drop since last week’s CFTC news.

Bitmex bitcoin volumes have dropped 42% since last week's CFTC news (as measured by volume's 4 day moving average).
— Alex Krüger (@krugermacro) July 23, 2019

In addition to CFTC, CME (Chicago Mercantile Exchange) is the second institutions available for US individuals and investors to involve in bitcoin futures contracts activity. Bitcoin futures traded at CME are derivative financial contracts that allow dealing parting to transact an underlying asset at a predetermined date in the future and for a certain price. CME offers cash-settled futures trading wherein users aren’t dealing with the real Bitcoin.
The post Here’s Why US CFTC’s Bitcoin Futures Drops Below Previous Weeks appeared first on Coingape.
Source: CoinGape

Bitcoin Futures: BitMEX investigation opens door for other exchanges to offer derivatives trading

Bitcoin and Futures: development for some, speculation for others. There are few things in this world that pose a greater degree of risk than investing in the cryptocurrency industry, throw a controversial investment product like derivatives into the mix, and you have a raging ball of fire, just sitting in your portfolio. Derivatives had a […]
The post Bitcoin Futures: BitMEX investigation opens door for other exchanges to offer derivatives trading appeared first on AMBCrypto.
Source: AMB Crypto

Caught in a Hayes: BitMEX volume drops post-CFTC investigation; who will pick up the Futures gauntlet?

Bitcoin Futures are caught in a haze, and not one that will please Arthur Hayes. Ask yourself, if you were BitMEX in a cryptocurrency price market where the king coin is bouncing between four and five figure valuations, why would you be in the thick of the news cycle? An obvious answer would be due […]
The post Caught in a Hayes: BitMEX volume drops post-CFTC investigation; who will pick up the Futures gauntlet? appeared first on AMBCrypto.
Source: AMB Crypto

Senate Banking Committee to Indulge in a Crypto Regulation Hearing Next Week

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Senate Banking Committee to Indulge in a Crypto Regulation Hearing Next Week
The crypto community is on a wait-and-see mode awaiting regulation hearings by the Senate Banking Committee expected to shape the future of the nascent crypto industry with more regulations introduced.
Senate Banking Committee to Indulge in a Crypto Regulation Hearing Next Week

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Source: CoinSpeaker

CFTC Investigates Crypto Exchange BitMEX Over Client Trades

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CFTC Investigates Crypto Exchange BitMEX Over Client Trades
The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto derivatives exchange BitMEX to determine whether it broke rules by allowing U.S. traders on its platform.
CFTC Investigates Crypto Exchange BitMEX Over Client Trades

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Source: CoinSpeaker

CME Exchange Might be Prepping for Ethereum [ETH] Futures Market Launch: Report

CME (Chicago Mercantile Exchange), has announced changes in its pricing data source for its Ether [ETH] based indices on the Exchange. CME is one of the largest platforms for trading regulated Bitcoin futures in the US. Recently. It also surpassed the all-time high daily trading volume above $1.7 billion.
The Exchange has added New York-based itBit Exchange to its list of data providers along with Kraken and Bitstamp. While Kraken is another US-based Exchange, Bitstamp is based out of Luxemburg.
According to Frank Chapprano, the Director at The Block, it is possible that CME is considering the launch of Ether [ETH] Futures. As reported on CoinGape earlier, the regulators at the CFTC are comfortable with the possibility of an Ethereum futures due to its widespread reach. Hence, the chance might be finally coming to fruition.
Reportedly, a source from the industry confirmed with the journalist about the preparations as he noted,
“I think this is prep for an Ether future, they have to improve the robustness of their index.”
The CFTC (Commodity and Futures Trading Commission) in the US presides over matters related to the futures market. Their concern around crypto-based future markets has been massive volatility and possible market manipulation that is prevalent in the crypto-industry.
However, decentralization and widespread presence of Ethereum is one the rise. As a platform or an investment asset seems Ethereum has achieved the degree of decentralization and open market characteristics that the futures market warrants.
The price of Ether [ETH] at 5: 00 hours UTC on 6th July 2019 is $294.11. It is trading 2.31% higher on a daily scale.
Do you think Ethereum Futures contracts will be bullish or bearish for Ethereum? Please share your views with us. 
The post CME Exchange Might be Prepping for Ethereum [ETH] Futures Market Launch: Report appeared first on Coingape.
Source: CoinGape

Crypto Derivatives: Will CFTC in US Follow UK in Posing Restrictions On It?

Bitcoin’s volatility has always been the most significant concern around the asset class. Nevertheless, the asset has moved past its ignorance phase as the institutions are increasingly adapting to provide services and products on it. The two most important of those from Financial Services point of view are contracts and custody arrangements.
Derivatives are financial contracts are bet on the price of the underlying asset. The financial institutions have grown to provide a variety of those contracts ranging from futures to binary options. Nevertheless, these are all instruments to bet on the price of the underlying asset according to one’s analysis.
Rise of Derivatives Contracts
Nevertheless, there has been a considerable rise in the demand of derivates contracts. Recently, LedgerX obtained a license from the CFTC to offer Bitcoin futures contracts. ErisX, backed by TD Ameritrade, also received the permit to offer Bitcoin futures contract on their platform. Moreover, Bakkt and Fidelity are also due to launch these contracts in the market on their platforms. Furthermore, the trading volume at CME has been growing consistently.

“CME #Bitcoin futures reached a record $1.7B in notional value traded on June 26, surpassing the previous record by more than 30%. The surge in volume also set a new open interest record of 6,069 contracts as institutional interest continues to build.” H/T: @CMEGroup pic.twitter.com/FgxtJ5PQ0a
— Gabor Gurbacs (@gaborgurbacs) July 1, 2019

Furthermore, in the US, concerns regarding the contracts are on the rise as well. The CFTC (Commodities Futures Trading Commission) oversees all the derivatives trading in the US. Moreover, due to its characteristics of being a global asset, Bitcoin derivatives contracts have been offered from Exchanges that operate outside the regulations to the US.
However, the CFTC noted that they are attempting to monitor all those activities and will soon put under the commission’s laws. James McDonald, CFTC enforcement director, told the media,
 “We are closely following how cryptocurrency is being traded, including in its derivative forms that would be subject to our regulatory jurisdiction,”
Hence, the contracts that were considered to be safe from the purview of CFTC will now soon be accounted for with the commission.
The Risk for Retail Investors is Too High
Bitcoin’s volatility poses a significant threat to these options. Reportedly, the FCA (Financial Conduct Authority) in the UK is considering an outright ban on the sale of these contracts to retail investors. According to the authorities, retail investors might not be equipped well enough to adjust to the extreme volatility in Bitcoin price.
GSR, a cryptocurrency-trading firm led by former Goldman Sachs Group Inc. commodities traders has also joined the list of trading firms offering these contracts. Cipher Technologies, led by Gerald Banks, also started to provide derivatives this year. However, Mr. Banks told the media,
“We would not fathom pushing this to anyone who would not be fully versed in the risk or in the nature of the underlying asset,”
Hence, while the institutional adaptability is seemingly increasing in this space, its viability for retail investors is still in doubts.
Do you think that retail investors must be allowed to trade these contracts? What are the risks involved? Please share your views with us. 
The post Crypto Derivatives: Will CFTC in US Follow UK in Posing Restrictions On It? appeared first on Coingape.
Source: CoinGape

Privacy cryptocurrency: CFTC Commissioner continues to be optimistic about zero-knowledge proof protocol

Financial privacy is a basic human right. This principle has been expounded by the lead maintainer of Monero, Riccardo Spagni, on more than one occasion. However, this “basic human right” has always been one of the major concerns of government authorities across the globe, mainly because of cases related to money laundering and terrorism financing. Owing […]
The post Privacy cryptocurrency: CFTC Commissioner continues to be optimistic about zero-knowledge proof protocol appeared first on AMBCrypto.
Source: AMB Crypto

CFTC Lets LedgerX Settle Futures in Actual Bitcoin

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CFTC Lets LedgerX Settle Futures in Actual Bitcoin
The Commodity Futures Trading Commission (CFTC) cleared Bitcoin derivatives provider LedgerX to offer physically settled BTC futures contracts to institutional and retail customers.
CFTC Lets LedgerX Settle Futures in Actual Bitcoin

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Source: CoinSpeaker

Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative

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Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative
Facebook is in talks with the U.S CFTC to find out whether its GlobalCoin project will fall under the agency’s regulatory requirements.
Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative

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Source: CoinSpeaker

GlobalCoin – Facebook Talks With US Top Regulator CFTC Over it’s Stablecoin

Facebook’s own currency,‘Globalcoin’ is trending on Google trend as the social media giant took yet another step to launch its coin in compliance with regulatory frameworks. Reports revealed that Facebook is in talks with US regulator over its Global coin digital currency.
Facebook Assessing GlobalCoin’s Future
The Commodity Futures Trading Commission (CFTC), a U.S. derivative regulator is reportedly the early stage regulator that Facebook has consulted. Reports add a comment of CFTC’s head Christopher Giancarlo. However, the key focus behind the talk is to understand whether or not Facebook’s Globalcoin falls under CFTC’s regulatory scope.
With 2.3 billion monthly active users (as per first quarter of 2019), this social giant is leading the way in the cryptocurrency industry with. In addition, user’s interest in Google trend for the term ‘Gloabalcoin’, is appearing on top of the graph on June 03, 2019.
Nevertheless, reports suggest that Facebook’s stablecoin feature might remove the need for a derivative linked to Globalcoin.
Also Read – Facebook’s ‘GlobalCoin’ to Attract 2 Billion People To Coinbase and Crypto Exchanges?
Facebook’s approach to CFTC is the source to seek guidance on its launch, however as per CFTC’s Mr.Giancarlo, they can only act on an application. He says;
“We’re very interested in understanding it better. We can only act on an application, we don’t have anything in front of us.”
Moreover, the regulator’s major concern might be on Facebook’s focus on strict KYC and AML policies. In fact, according to reports, the US Treasury’s Financial Stability Oversight Council has its crypto group that overtakes the various crypto-oriented issues including the entry of financial entities to digital assets space. In specific, it also examines ‘“illicit activity undertaken with digital assets”.
So readers, what’s your take on Facebook’s step of discussing with CFTC? Let us know in the comment below.
The post GlobalCoin – Facebook Talks With US Top Regulator CFTC Over it’s Stablecoin appeared first on Coingape.
Source: CoinGape

CFTC Ready For Ethereum Futures, Will ETH Price Rise to $200?

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CFTC Ready For Ethereum Futures, Will ETH Price Rise to $200?
The U.S. Commodity Futures Trading Commission (CFTC) said they are willing to approve Ethereum futures contract – provided it does everything right.
CFTC Ready For Ethereum Futures, Will ETH Price Rise to $200?

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Source: CoinSpeaker

A Big Plus, Ethereum (ETH) Futures Translate to Institutional Investment

Ethereum (ETH) prices add 4.4 percent
Anonymous senior official says CFTC may approve compliant ETH derivatives

Five months after issuing am RFI, the CFTC may get comfortable with Ethereum (ETH) derivatives opening up doors for institutional investment. Not only will it elevate Ethereum (ETH) position but CFTC approval would cement Ethereum as a go-to smart contracting platform.
Ethereum Price Analysis
Fundamentals
The CFTC is a US Agency that regulates the options and futures market. All entities or funds wishing to roll out crypto futures or options markets must get a nod from the regulator. With Bitcoin futures up and running, an official with the CFTC now says it may get comfortable with the idea of Ethereum derivatives provided their product “ticks all the right boxes” according to a CoinDesk report. The senior official chose to remain anonymous because the agency “doesn’t do bold pronouncements” further adding that:
“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us.”
It comes barely five months after they issued an RFI (Request for Information) back in Dec 2018 when they asked a raft of questions including the technology, the market cap, and market around ETH. According to George Pullen—the senior economist with the CFTC Division of Market Oversight, the RFI was necessary as the contrast would be a differentiator and their approach, not a “one-size fits all approach to crypto.”
Candlestick Arrangement

Although Ethereum (ETH) volatility is low, adding 6.7 percent in the last week, fundamentals point to an undervaluation. Considering what’s in store like Ethereum 2.0, reward reduction and developer preference, it is likely that prices will rally. Regardless, before necessary breakouts above $250 or higher, there must be a reversal and consequent invalidation of Nov 2018 losses.
In line with our previous ETH/USD trade plan, it is imperative that bulls close above April highs. That will signal bulls as prices rally past $170, a vital resistance level. After that, risk-averse, conservative traders can load up with targets at $250. Before then, risk off traders can buy on dips with targets at $190 as ETH prices bounce off the 78.6 percent Fibonacci retracement levels of Apr-2-8 high low.
Technical Indicators
Technically, it is after there is a reversal of Apr-25 bears that risk-off traders can increase their long positions. The bar has high volumes—160k, closing below the lower BB. Therefore, that means, close above $170 or Q4 2018 primary support must be with high volumes exceeding 160k activating the first wave of buyers.
Chart courtesy of Trading View
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