Bitcoin entered the world of mainstream finance on Sunday, December 10, 2017, with the Chicago Board Options Exchange (CBOE) Global Markets’ launch of Bitcoin future contracts. In the debut session on CBOE’s exchange, the crypto currency surged as much as 25 percent.
The event has opened the door to the crypto currency market for institutional investors’ trillions of dollars. The institutional investors have welcomed the advent of futures as it provides a regulated framework for trading the cryptocurrency.
Bitcoin's launch on futures market, under the symbol XBT, is seen as an important event that will increase the number of participants and capital in the cryptocurrency market. The futures launch is also a step closer to the launch of Bitcoin exchange-traded funds (ETFs). CME Group Inc.’s exchange is set to launch similar futures next week.
Soon after the exchange opening on Sunday, CBOE’s website crashed due to the massive influx of traffic resulting from the launch of its Bitcoin futures contract. The Bitcoin value continued on its rally, opening at $15,460 in New York on Sunday evening and leaping to a high of $16,660. Earlier on Friday, Bitcoin had surged to an all-time high of $18,353.
Experts believe that the Bitcoin futures by CBOE and CME Group will bring volatility stabilization for the virtual currency, and make Bitcoin a stable asset and more attractive investment option.
The crypto currency has skyrocketed to a record high this year, experiencing an astounding 15-fold gain since the beginning of 2017. This year alone, Bitcoin is up by 1,600 percent. The surge in Bitcoin value has garnered institutional interest, also leading to fears of a bubble.
Due uncertainty regarding Bitcoin futures, it has been a roller-coaster of a week for Bitcoin. It has dropped several thousand dollars and gained the same within 24 hours on many occasions.