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!
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Source: CoinGape

Bitcoin Futures under $1 billion on BitMEX; investors’ interest continues to drop

Bitcoin’s unexpected slump on 24 September took a majority of the community by surprise. After consolidating above $10,000 consistently since 21 June, Bitcoin was treading under the $8500 range. The fall in valuation is now, exhibiting a direct impact on the Futures market. Before the fall on 24 September, the Futures markets for Bitcoin and […]
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Source: AMB Crypto

BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months

Saturday turned out to be the slowest day for crypto markets as total Bitcoin Futures volumes on the BitMEX platform was recorded to be a minor $948 Million. 
Are Bitcoin Futures Trading Low? 
Source- Skew Markets
While the leading derivatives exchange BitMEX only traded futures worth $948 Million, Binance Futures recorded a trading volume of 16k BTC in an hour. Also, recently the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC.
Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
Source- Binance
On the 9th of October, the trading volume of Bitcoin (BTC) futures on the Intercontinental Exchange’s (ICE) Bakkt platform reportedly soared to 224 contracts on Oct. 9, recording an increase of 796%. However, the start of trading on Bakkt showed poor volumes – merely 72 BTC on the first day. Interestingly, the situation has turned for the better and seems to have picked up a relatively healthy pace.
Source- Bakkt Bot
The low trading volume noted on the BitMEX platform could be one of the several instances of a bad trading day and it might gradually pick up.
Furthermore, despite the decline in Bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily Open Interest (OI) of over 4.6K contracts, up 61% vs Q3 2018.
Source- Twitter
As the market continues to garner more opportunities for Bitcoin Futures, it is predicted that Bitcoin prices will gradually increase as futures contracts continue to have a healthy trade volume. 
Bitcoin Perpetual Funding Rates in Positive Territory
All Bitcoin perpetual funding Rates are currently in positive territory. A Perpetual Contract is a derivative product that is similar to the traditional Futures Contract.
Source- Skew Markets
The Funding Rate comprises two main parts the Interest Rate and the Premium / Discount. This rate aims to keep the traded price of the perpetual contract in line with the underlying reference price.  Thus,  the contract mimics how margin-trading markets work as buyers and sellers of the contract exchange interest payments periodically.
Will Bitcoin Futures continue to intrigue investors and traders in the long run? Let us know what you think in the comments below!
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Source: CoinGape

Institutions Long on Bitcoin as Analysts Expect Upward Price Breakout

Despite the harrowing price drop seen in late September, institutions are expecting for the Bitcoin (BTC) price to soon head higher — at least for institutions involved in the Chicago Mercantile Exchange (CME) futures market.
According to a recent Commitments of Traders report shared by Romano, traders that identify as either “asset managers” or “institutions” are currently 69.31% long on the CME’s Bitcoin futures, and 30.69% short by the number of contracts open.
Romano noted that just two weeks ago, when Bakkt launched, the same report said that the aforementioned demographic was net short. Of course, Bitcoin crashed in the days that followed. This, he claims, is a sign that institutions “have a good track record for the right directional trade”.

COT Report: Bitcoin CMEFutures Only Positions as of 2019-10-01CFTC Code: #133741
Asset managers/Institutional net long69.31 % long and 30.69% short
(They were net short at the day of the bakkt launch. They have a good track record for the right directional trade) pic.twitter.com/utohW7wMlD
— [ Romano ] (@RNR_0) October 6, 2019

It is important to note that while institutions and asset managers are net long on the CME’s Bitcoin futures contracts, leveraged funds, which use more aggressive investment techniques, are leaning in the opposite direction. Romano did not comment on that facet of the CME’s COT report.
Related Reading: More Downside in Bitcoin Before Conservative Buying Opportunity, Say Analysts
Bitcoin Bull Case Gains Traction
Although Romano reminded his followers that institutions being net long isn’t a conclusive sign that Bitcoin will head higher in the near future, there is evidence to suggest that cryptocurrencies may soon rebound.
As reported by NewsBTC previously, recent price action, especially the capitulation from $10,000 to $7,700, is structurally similar to what took place in November and December of 2018, during which Bitcoin fell from $6,000 to $3,000 in a short period of time. Crypto Hamster recently wrote:
“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now.”

What he is implying is that Bitcoin may soon break to the upside, having bottomed in the recent flash crash.
Also, an analyst recently argued that Bitcoin’s four-hour chart looks “promising”, with there being an uptrend forming for both the Relative Strength Index and the Moving Average Convergence Divergence (MACD) — a sign that they claim is an indication that “we may have a bottom”.
Related Reading: Too Obvious? Current Bitcoin Price Action Resembles $3,200 Bottom
Featured Image from Shutterstock
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Source: New feedNewsBTC.com

Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures

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Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures
Intercontinental Exchange has completed the first block trade of Bakkt Bitcoin futures contracts which was executed between digital assets merchant bank Galaxy Digital and crypto investment firm XBTO.
Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures

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Source: CoinSpeaker

BlockFi report claims institutional investor interest and exposure to crypto are on the rise

As of today, there are several Bitcoin financial products targeting institutional Wall Street investors, be it Bitcoin futures contracts offered by CME and Bakkt, or Over The Counter (OTC) trades, with the SEC already considering a host of ETF proposals as well. However, there is no way to accurately determine the participation levels of these […]
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Source: AMB Crypto

First Week Performance of Bakkt’s Bitcoin Futures Remains Disappointing

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First Week Performance of Bakkt’s Bitcoin Futures Remains Disappointing
Bakkt’s entry into the crypto space remains disappointing so far in the first week of its Bitcoin Futures launch. Bakkt’s performance has also resulted in the Bitcoin price crash last week, according to some experts.
First Week Performance of Bakkt’s Bitcoin Futures Remains Disappointing

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Source: CoinSpeaker

CME Futures Contracts Expire Tomorrow, Will Bitcoin Price Plunge Further?

Recent findings reveal that futures contracts on CME have had a plunging effect on the price of bitcoin most of the times. According to a report from Arcane Research, bitcoin and cryptocurrency analysts found out that bitcoin drops about 2.27% in price on an average ahead of CME’s monthly settlements.
Bitcoin Price is Manipulated Ahead of Monthly Futures Settlement
Analysts at Arcane Research have reasons to believe that bitcoin’s repeated price drop ahead of monthly futures settlement at CME can’t merely be a coincidence. Explaining the possible situation, Arcane’s Bendik Norheim Schei wrote,
“Statistically, it is highly unlikely that the price falls in advance of CME settlement should be caused by mere coincidence,”
“The figures thus support a hypothesis that the bitcoin price is manipulated in advance of CME settlement. However, the figures do not say anything about deliberate manipulation or, for example, only a result of investors’ strategy of hedging…”
Schei also says that the fact that CME’s bitcoin futures are settled in cash and not in bitcoin makes this market rife for speculation
“These futures contracts are optimal for manipulation. They are settled in dollars and not in bitcoin. The price for the settlement is determined by the bitcoin price in the underlying market. Thus, it is never actual bitcoin that change hands, and it is just an overlying market traded in dollars.”
How Is Bitcoin Price Manipulated?
Although the results of the research do not entirely reveal the mechanisms involved in the suspected price manipulation, the fact that CME settles its monthly futures contracts in USD makes it possible for speculators and traders to bet against the price of bitcoin. On a monthly basis, towards the settlements period, it is suspected that traders try to play the system by shorting bitcoin.
Recent Occurrences of Alleged Price Manipulation
In the last year 2 years, from January 2018 up till August 2019, analysis shows that bitcoin price had recorded a downtrend ahead of CME futures contracts settlements in 15 out of the 20 months under review. According to the analysis, only 5 months (2018-2019: Apr, Sept., Dec., Mar., July) did bitcoin price rise ahead of such a  settlement period. In the remaining months, bitcoin had fallen by an average of 2%.
Bitcoin price against monthly CME futures contracts settlements
Analysts too are weighing in on the situation. In eToro’s Daily Market Updates newsletter, Senior Analyst Mati Greenspan says that since the volumes on these contracts have been particularly high this week – 142,340 BTC from Monday, Bitcoin price could experience high volatility at the end of the month.
 
Crypto Welson, in his tweet earlier today, noted that bitcoin had bounced back every time it dipped due to CME futures settlement. He also suggested that Bitcoin price was in for a trend reversal after the expiration of CME’s futures contracts on Friday.

Since March 2019, #Bitcoin CME Futures have expired at the end of the months.
Every time, prior to expiratory BTC has dipped. While after the futures expired, BTC had a reversal!
CME Futures are expiring tomorrow, which means a change in direction could be soon! #October pic.twitter.com/IYzWt8EH6q
— Crypto Welson 📊 (@CryptoWelson) September 26, 2019

What’s Different with Bakkt’s Bitcoin Futures?
Many market watchers are hoping that Bakkt‘s physically-settled bitcoin futures contracts will divert investors from putting money in cash-settled contracts, therefore, reducing the scope of price manipulation. Further, Mati Greenspan is of the opinion that the recent price drop was owing to the “introduction of the unique price discovery that comes only with having a regulatory compliant option to trade bitcoin directly for US Dollars”. CME, though a regulated exchange, had only partially been able to solve the problem of price discovery because its contracts were settled in cash. He also suggested that unregulated exchanges may have been keeping Bakkt’s price inflated and volatile.
However, Bakkt kicked off rather slowly and developments, in terms of bitcoin trading volume within the last couple of days, has not been impressive. Therefore, it remains to be seen if the adoption of Bakkt will help minimize this alleged price manipulation associated with CME’s bitcoin futures.

 
The post CME Futures Contracts Expire Tomorrow, Will Bitcoin Price Plunge Further? appeared first on Coingape.
Source: CoinGape

Fundstrat’s Thomas Lee “Very Positive” About Bakkt’s Impact; 3 Days to Launch!

The popular “game-changer” project which proposes physically delivered bitcoin futures, Bakkt, launches later in September. While Fundstrat CEO Thomas Lee has shared that he is “very positive” about the Bakkt launch because of the impact it will have on institutional investment, the crypto Twitter community is busy speculating how it will affect the price of bitcoin. 
Bakkt Will Help Build Institutions’ Trust in Crypto
Renowned American businessperson, financier and investor and who is known for being one of the early pioneers in private equity, Thomas Lee, took to Twitter to weigh in on the impact of Bakkt on institutional investment. Thomas Lee says,

I am very positive on @Bakkt and it’s ability to improve trust with institutions to crypto https://t.co/7icnJp76GE
— Thomas Lee (@fundstrat) September 20, 2019

He shared this opinion in support of a tweet made by another user, Mia Tam, who believes that Bakkt’s launch in the next few days will have a bullish impact on Bitcoin.

Bakkt in 4 days 👀
Now it all makes sense 🚀#Bitcoin $BTC pic.twitter.com/gwcAfN3nLl
— Mia Tam (@_blockandchain_) September 19, 2019

Crypto Community on the Bakkt Launch
Other twitter community members are reacting to the Bakkt’s launch in a number of ways. Many believe it may initiate a short bearish season in which bitcoin price may eventually fall considerably due to massive manipulation.
According to a twitter user,

Source: Twitter
However, a few others have given contradicting opinions clearly expressing the advantages of Bakkt’s launch to the crypto community.
Source: Twitter
Intercontinental Exchange (ICE), the creator of New York Stock Exchange (NYSE) announced the launch of Bakkt, a bitcoin futures exchange and digital assets platform. The launch which is scheduled for September 23, is expected to bring tangible institutional investment into the crypto space.
This initiative, in its entirety, is quite interesting, as it represents competition for existing cryptocurrency trading infrastructure – Bakkt is simultaneously competing in the futures space (against CME in particular), and against spot crypto exchanges. It is likely that Bakkt will not just be a game-changer for the crypto market, but the entire investment space as it will help Bitcoin-based products gain a position among mainstream investment offerings.
The post Fundstrat’s Thomas Lee “Very Positive” About Bakkt’s Impact; 3 Days to Launch! appeared first on Coingape.
Source: CoinGape

CME Futures at a 4-Month Low & BTC Below $10K as Alts Remain Steady

Chicago Mercantile Exchange (CME) futures is said to have recorded a 4-month low amid crashing BTC price. Altcoins, on the other hand, have been rising steadily. Today, despite a bearish market, they were not affected as drastically as the top cryptocurrency. Is this an indication of the rise of altcoins?
Trading Volume of CME Futures Falls to a 4-Month Low
According to charts which show the relationship between CME’s open interest and daily volumes, there has been a significant fall in open interest from $384 million to the current value of $218 and daily volume has reduced from its maximum value of $1.726 billion to its current value at $86 million.
The news comes following the most recent Bitcoin’s price fall which began about 48 hours ago in which bitcoin had slumped below the long-held $10k support level. Also, about a week ago, perhaps in their bid to maintain trading volume, CME was reported to have opened the gates for traders to enable them to hold a higher number of open BTC contracts as they doubled their BTC futures contracts limits.
CME Daily Volume | Source: skew
Bitcoin Dips Below $10k
Bitcoin began the week on a bearish note. The top cryptocurrency had fallen steeply from its previous price of $10,351 on Sunday morning to its current price of $9,897 in the early hours of today. This represents a 4.5% fall. Though the percentage of the dip is relatively small given the kind of volatility the crypto market has seen earlier, bitcoin slipping below the $10k support level alongside a bull run seen in alts within the same period of time raises several questions.
Has the Alt Season Arrived?
As bitcoin loses market dominance from 70.5% since September 3rd  to 67.5% as of the present, Ethereum, which now trades well above $200 has increased in market dominance to about 9%. Many other alts, alongside Ethereum, rose steadily. Ripple gained almost 10% which saw the price crossed the critical $0.3 dollar resistance while Stellar (XLM) has gained more than 50% in the last 3 days. Many top cryptocurrencies recorded gains which make analysts believe that we have now officially entered the long-awaited alt season! Despite this, alts are beginning to record loses.
According to Crypto Welson on twitter,

$ETH and many other altcoins have dipped slightly after being at resistance. Luckily support is very strong, so I don't think it will be dropping too much. 🤑 pic.twitter.com/HqyTv2ANJm
— Crypto Welson 📊 (@CryptoWelson) September 19, 2019

Many other analysts seem to support the notion that alts are reaching for the moon which this new price breakout. Though there has been a bearish mood today, they believe this is still very much healthy.

Most $ALTS are only down 3% from 15% moves & this was a very logical drop.
Take $ETH for example, double rejection at 200EMA (orange). Expecting the huge confluence of EMAs (10, 21, & 50) to hold as support at green box. pic.twitter.com/ULaPy48CDZ
— Everett Otsukimi (@OtsukimiCrypto) September 19, 2019

What Has Brought About the Bitcoin Price Crash?
On the other hand, while the enthusiasm existing as a result of Bakkt’s expected launch is still high, many believe that large BTC holders, more commonly known as whales, might be manipulating the market in preparation of the much anticipated Bakkt launch. According to an opinion on Twitter,

Well well well. #BTC is heading to decision point. It is all messed by #BAKKT, everybody is too euphoric. I am? First, i would love to see some volatility. How you could trade the king, when he barely moves?! BTC needs healthy correction and im sure, we will get it… pic.twitter.com/sx0lE4QhM6
— CryptoMessiah (@messiah_crypto) September 19, 2019

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Source: CoinGape

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

Binance’ New Futures Trading Platform Hits All-Time High of $150M in Daily Trading Volume

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Binance’ New Futures Trading Platform Hits All-Time High of $150M in Daily Trading Volume
Binance recently launched its futures trading platform which is on an invitation-only basis. The soft launch has already raised about $150 million in less than twenty-four hours. This may mean good things for the cryptocurrency exchange.
Binance’ New Futures Trading Platform Hits All-Time High of $150M in Daily Trading Volume

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Source: CoinSpeaker

Bakkt Reveals Bitcoin Futures Details – Here’s How it is One-Up on CME

The much anticipated Bakkt ‘Bitcoin [BTC] futures contracts’ is scheduled for launch on 23rd September 2019. While these are not the first regulated Bitcoin [BTC] futures contract with BitMEX and CME currently leading the space, Bakkt’s is one-up on all existing platforms.
The Bakkt contracts will be margined and as mentioned before – can be settled using Bitcoins itself. Hence, it can also be used as an alternative to unregulated spot markets as it has custody arrangements as well. Moreover, Bakkt will offer:
• Bakkt Bitcoin (USD) Daily Futures
• Bakkt Bitcoin (USD) Monthly Futures
The CME provides only monthly Bitcoin Futures contracts. The daily contracts would likely increase the volatility in the everyday price of Bitcoin. Nevertheless, the regulated platform will improve the fundamentals around Bitcoin [BTC] massively.
Rhythm, a crypto-trader talked about the advantage of Bakkt over CME and its effect on Bitcoin markets, he tweeted,
Unlike other futures exchanges, this is settled in bitcoin. Actual bitcoin is paid out, not just the fiat equivalent to the price of bitcoin.
The result is better price discovery and liquidity for bitcoin.
Kelly Loeffler, the CEO of Bakkt, told the media, that the core service Bakkt will offer is “secure, regulated custody,” alongside its institutional-scale trading.
The monthly futures contract on Bakkt is based on “forward pricing curve” for investors, giving them an option to see prices up to 12 months. She specifically talked about the halving schedule due next year; which will be enabled for speculation through the monthly contracts.
Also Read: 5 Reasons Why Bakkt’s Launch is BIG News for the Crypto Community
Furthermore, as the daily contracts are margined, it will provide a lot of space for institutional money to get involved in the day to day activities around it.
The Bakkt launch data announcement has had an extremely positive effect on the Bitcoin’s price. The price of Bitcoin at 3: 30 hours UTC on 20th August 2019 is $10,800. Bitcoin has gained about 6% since the announcement.
Do you think that daily futures contracts will increase the volatility or decrease it? Please share your views with us. 
The post Bakkt Reveals Bitcoin Futures Details – Here’s How it is One-Up on CME appeared first on Coingape.
Source: CoinGape

Coinbase Participates in $4.3 Million Funding Round of Crypto Derivatives Platform Blade

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Coinbase Participates in $4.3 Million Funding Round of Crypto Derivatives Platform Blade
Crypto derivatives platform Blade will allow users to trade its perpetual swap contracts in Bitcoin and altcoins with up to 150x leverage. Coinbase, as well as other giants, took part in this funding round.
Coinbase Participates in $4.3 Million Funding Round of Crypto Derivatives Platform Blade

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Source: CoinSpeaker

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