Dec 11 (Lagos) - Trading bitcoins entered a new phase today, after Chicago’s CBOE (CHICAGO BOARD OF OPTIONS EXCHANGE) listed the first futures contract on the crypto-currency. The initial reaction was beyond expectations with the futures contract climbing more than 20% and triggering two trading halts.
CBOE’s website experienced unprecedented traffic which may well have sent a new benchmark; the frenetic activity led to delays and outages. So far, it seems professional investors aren’t willing to bet against the bitcoin, despite the many warnings of a bubble that will burst soon.
Many traders aren’t even interested in the price direction, but the listing of the futures contract on CBOE and later next week on the CME, will provide them an arbitrage trading opportunity due to the vast pricing differences.
However, the arbitrage trading will lead to improved price efficiency and probably less volatility. After volatility settles down, the focus will return to the price direction.
reporting for easykobo.com on Monday, Dec 11 2017 from Lagos, Nigeria
Source - Hussein Sayed, Chief Market Strategist at FXTM, comments on bitcoin