TD Ameritrade to open trading on bitcoin futures

Lloyd Doyle
December 16, 2017

Trading in bitcoin futures commenced at the CBOE on December 10 and will commence on CME on December 18, with Cantor's options trading to follow.

As the CEO of Goldman, Lloyd Blankfein has said many times that he is in two minds about bitcoin and all the hype related to it. Bitcoin has slowly inched up from $16,400 to around $17,600 where it now trades, things could heat up again over the weekend though as more futures contracts will be launched. He also points out that not only are the largest bitcoin miners in the world not in the USA, but they are also not built to trade financial instruments.

TD Ameritrade is one of the top three retail brokerages, according to capital markets research and consulting firm Tabb. The firm just announced it will begin allowing trading of bitcoin futures on its futures platform on Monday. It offers its services to traders and independent registered investment advisors, and retail investors. Volatility in the bitcoin cash market has not been as high this week as it has been in previous weeks, and the spread between the futures and cash contract has narrowed to a little over 1.5 percent from more than 5 percent earlier in the week. Customers must have a minimum account balance of $25,000 in order to be eligible to trade bitcoin futures. The one who would like to participate in a volatile financial market but would not like to own the actual cryptocurrency. This is the same process we use with any new product. "At this point we believe the market is showing signs of adequate liquidity for CBOE products". Compare that to the last 24 hours in the Bitcoin market which stands a volume of $12 billion according to

According to Wirtschaftswoche, the futures contracts will be traded via Deutsche Börse's Eurex derivatives exchange. Only when the heavyweights such as JP Morgan Chase and Morgan Stanley allow their clients to trade crypto currency will things really heat up for institutional investors. Today, bitcoin ETFs are also looking more likely to be approved.

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