Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Cboe Global Markets    CBOE

CBOE GLOBAL MARKETS (CBOE)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Bitcoin futures suggest breakneck rise in price to slow

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/11/2017 | 10:53pm CEST
FILE PHOTO: A Bitcoin logo is displayed at the Bitcoin Center New York City in New York's financial district

NEW YORK/LONDON (Reuters) - Newly launched bitcoin futures on Monday suggested that traders expect the cryptocurrency's blistering price gains to slow in the coming months, even as it blasted above $17,000 to a fresh record high in the spot market.

Chicago-based derivatives exchange Cboe Global Markets (>> Cboe Global Markets Inc) launched the futures late on Sunday, marking the first time investors could get exposure to the bitcoin market via a large, regulated exchange.

The one-month bitcoin contract <0#XBT:> opened at 6 p.m. local time (2300 GMT) on Sunday at $15,460. By late afternoon on Monday in New York, it was trading at $18,650, roughly 8 percent above bitcoin's spot price of $16,900 on the Bitstamp exchange <BTC=BTSP>.

Bitcoin earlier hit a record high of $17,270.

Its steep gains and rapid rise have attracted investors around the world as well as intense scrutiny from government regulators, which is the very opposite of what its creators wanted when it first launched bitcoin more than eight years ago.

"The bitcoin founder should be horrified seeing it rise so quickly, as any serious focus on it and its recent explosive move higher will soon end its freedom," said John Taylor Jr, president and founder of research firm Taylor Global Vision in New York.

Taylor believes that based on his charts, bitcoin has not yet peaked, but as soon as the "upmove ends, it will crash."

Given bitcoin has almost tripled in value over the past month, and was up more than 15 percent on Monday alone, the futures pricing suggested investors see price increases moderating.

Bitcoin futures were already offered on some unregulated cryptocurrency exchanges outside the United States, but backers said the U.S. market debut would confer greater legitimacy on the volatile cryptocurrency and encourage its wider use.

The CME Group (>> CME Group Inc) is expected to launch its futures contract on Dec. 17.

(To view a graphic on Bitcoin's blistering ascent, click http://tmsnrt.rs/2AeMjHe)

VOLATILITY CONCERNS

Although there are hopes that the futures will draw in new investors, most fund managers at larger asset managers and institutional investors said bitcoin remains too volatile and lacks the fundamentals that give other assets value.

"There's no place for bitcoin in a multi-asset portfolio given the very high volatility," said Robeco Chief Investment Officer Lukas Daalder.

The two-month contract was trading at $18,750, an 11 percent premium over the spot price, while the three-month contract was changing hands at $18,140, a roughly 12 percent premium.

While modest when compared with bitcoin's 270 percent increase over the past three months and 230 percent rise in the last two months, those levels still indicated a lack of large "short" positions betting against bitcoin.

"Anyone, especially a professional trading outfit, would be crazy to actually short sell this bull market," said Nick Spanos, founder of Bitcoin Center NYC. "But just because it doesn't happen on day one doesn't mean it won't in the future."

Bitcoin was up more than 1,600 percent so far in 2017, having started the year at less than $1,000.

'MARCH TOWARDS LEGITIMIZATION'

As of early afternoon trading in New York, 3,951 one-month contracts had changed hands, meaning around $73.1 million had been notionally traded. That compares with daily trading volumes of more than $21.5 billion across all cryptocurrencies, according to trade website Coinmarketcap.

There had been speculation that the futures launch would trigger more gyrations in the market. But while volatile compared with traditional currencies or assets, the rise on Monday was relatively tame for bitcoin.

Bitcoin surged more than 40 percent in 48 hours last week, before tumbling 20 percent in the following 10 hours.

"(Bitcoin futures) will speed up the march towards legitimization of an asset class that only a few years ago many law enforcement agencies would have argued had limited legitimate reasons for people to use," said Jo Torode, a financial crime lawyer at Ropes & Gray in London.

The futures are cash-settled contracts, allowing investors exposure without having to hold any of the cryptocurrency.

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

(GRAPHIC: Bitcoin futures suggest growth, but slower - http://reut.rs/2yfblkV)

DRAMATIC GAINS

Bitcoin was set up in 2008 by an individual or group calling themselves Satoshi Nakamoto, and was the first digital currency to successfully use cryptography to keep transactions secure and hidden, making traditional financial regulation difficult if not impossible.

Central bankers and critics of the cryptocurrency have been ringing the alarm bells over its surge in price and other risks such as whether the opaque market can be used for money laundering.

"It looks remarkably like a bubble forming to me," the Reserve Bank of New Zealand's Acting Governor Grant Spencer said on Sunday.

Somebody who invested $1,000 in bitcoin at the start of 2013 would now be sitting on around $1.2 million.

Heightened excitement ahead of the launch of the Cboe futures gave an extra kick to the cryptocurrency's scorching run this year.

The launch has so far received a mixed reception from big U.S. banks and brokerages.

Several online brokerages, including Charles Schwab Corp (>> Charles Schwab Corp) and TD Ameritrade Holding Corp (>> TD Ameritrade Holding Corp.), did not allow trading of the new futures immediately.

The Financial Times reported on Friday that JPMorgan Chase & Co (>> JP Morgan Chase & Company) and Citigroup Inc (>> Citigroup) would not immediately clear bitcoin trades for clients.

Goldman Sachs Group Inc (>> Goldman Sachs Group) said on Thursday it was planning to clear such trades for certain clients.

(For an interactive graphic on bitcoin's blistering ascent, click http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-MARKETS-BITCOIN/010051YC4E4/index.html)

(Additional reporting by Chuck Mikolajczak and John McCrank in NEW YORK; Michelle Chen in HONG KONG and Helen Reid in LONDON; Graphics by Ritvik Carvalho in LONDON and Reuters Graphics team; Editing by Meredith Mazzilli)

By Saqib Iqbal Ahmed, Jemima Kelly and Gertrude Chavez-Dreyfuss

Stocks mentioned in the article
ChangeLast1st jan.
CBOE GLOBAL MARKETS 1.09% 106.02 Delayed Quote.-14.90%
CHARLES SCHWAB CORPORATION (THE) 2.53% 54.22 Delayed Quote.5.55%
CITIGROUP 0.72% 69.85 Delayed Quote.-6.13%
CME GROUP 1.18% 171.02 Delayed Quote.17.10%
GOLDMAN SACHS GROUP 0.10% 231.24 Delayed Quote.-9.23%
JP MORGAN CHASE & COMPANY 0.93% 111.53 Delayed Quote.4.29%
TD AMERITRADE HOLDING CORP. 2.95% 58.33 Delayed Quote.14.08%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CBOE GLOBAL MARKETS
07/13EU markets watchdog intervenes in share trading ahead of Brexit
RE
07/12CBOE GLOBAL MARKETS : EU tells UK financial firms time running out for Brexit li..
RE
07/11CBOE GLOBAL MARKETS : Commends House Passage of Options Market Stability Act
AQ
07/06CBOE GLOBAL MARKETS : Reports June 2018 Trading Volume
PR
07/03CBOE GLOBAL MARKETS : Announces Plans for New Venue in Amsterdam
AQ
07/02CBOE GLOBAL MARKETS : Celebrates 35th Anniversary of S&P 500 Index Options (SPX)
PR
06/28CBOE GLOBAL MARKETS' : Exchanges Trading Schedule for July Fourth Holiday
AQ
06/25Initiating Free Research Reports on Ares Capital and Three Other Investments ..
AC
06/18CBOE GLOBAL MARKETS : Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Not..
AQ
06/15CBOE GLOBAL MARKETS : Notification of the SEC's Intent to Award a Single Source ..
AQ
More news
News from SeekingAlpha
07/13CBOE : Buy This Trading King 
07/10Financial initiations 
07/06CBOE Global Markets reports June trading volume 
07/03Cboe plans new trading venue in Amsterdam as it prepares for Brexit 
06/27Becoming A Venture Capitalist Through Overstock 
Financials ($)
Sales 2018 1 168 M
EBIT 2018 711 M
Net income 2018 419 M
Debt 2018 851 M
Yield 2018 1,12%
P/E ratio 2018 29,04
P/E ratio 2019 24,92
EV / Sales 2018 10,8x
EV / Sales 2019 10,3x
Capitalization 11 798 M
Chart CBOE GLOBAL MARKETS
Duration : Period :
Cboe Global Markets Technical Analysis Chart | CBOE | US12503M1080 | 4-Traders
Technical analysis trends CBOE GLOBAL MARKETS
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 112 $
Spread / Average Target 6,6%
EPS Revisions
Managers
NameTitle
Edward T. Tilly Chairman & Chief Executive Officer
Christopher R. Concannon President & Chief Operating Officer
Brian N. Schell Chief Financial Officer, Treasurer & Executive VP
Christopher A. Isaacson Chief Information Officer & Executive VP
Janet P. Froetscher Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CBOE GLOBAL MARKETS-14.90%11 798
CME GROUP17.10%57 555
INTERCONTINENTAL EXCHANGE INC8.80%43 795
HONG KONG EXCHANGES AND CLEARING LIMITED-3.23%36 854
DEUTSCHE BOERSE24.23%26 828
INTERACTIVE BROKERS GROUP, INC.10.35%26 634