Bitcoin price jumps up 20% as futures go live

Doris Richards
December 11, 2017

Interactive Brokers said its all-in commission rate, including exchange and regulatory fees, for bitcoin futures will be $5.01 per contract for the CBOE product and $15.01 per contract for the CME product.

The start of trading is a first in the history of trading as unlike commodities, bitcoins aren't physical assets and unlike traditional currencies there is no central bank that backs the currency.

"Due to heavy traffic on our website, visitors to may find that it is performing slower than usual and may at times be temporarily unavailable", the exchange said in a statement.

Bitcoin has never been hotter, even your non-tech friends are discussing the soaring cryptocurrency down the pub as it soars past $16,000. As of 12:30 p.m. CST, it was at $16,510 on Coindesk.

Three more fund managers are proposing bitcoin funds that would use futures to gain access to the market instead of investing directly in them, filings showed on Monday.

The CBOE futures don't involve actual bitcoin.

The futures are based on the auction price of bitcoin in USA dollars on the Gemini Exchange, which is owned and operated by brothers Cameron and Tyler Winklevoss, who are virtual currency entrepreneurs.

Speaking on CNN, CNN Money correspondent Paul R. La Monica expressed his concerns saying, "You have all of this fervour around Bitcoin because the price continues to go higher... and I think that's attracted a lot of average investors who think 'hey the stock market is doing okay, but I can't make money that quickly off a company like Apple or Google, so why not throw money into Bitcoin?'" The website is owned by CBOE Global Markets Inc (CBOE.O), which listed the first bitcoin futures contracts and plans to list bitcoin ETFs if they are approved. The entrance of regulated exchanges enables professional investors who have been unwilling to do business on the unregulated platforms where bitcoin now trades to place bets on bitcoin's price. The Tokyo Financial Exchange has also revealed its intentions of launching its own bitcoin futures. JPMorgan Chase CEO Jamie Dimon has called bitcoin "a fraud".

The front-month bitcoin contract, which expires in January, traded at $17,970 on Monday morning.

Bitcoin's volatility was on full display Thursday. They only live on computers and are produced by complex algorithms recorded in a digital ledger. Others say they can be helpful methods of payment, such as in crisis situations where national currencies have collapsed.

Other reports by Iphone Fresh

Discuss This Article