While bitcoin (BTC) has fallen in value in recent days, it has increased considerably over the longer period. In April, bitcoin embarked on a new upward movement, raising it to nearly $ 13,900. Less than a month before that, the American stock exchange Chicago Board Options Exchange (CBOE) decided to end its bitcoin futures because the interest would be too low after the price had fallen considerably in value.
Bitcoin futures primarily offer institutional investors a way to invest in the cryptocurrency. While before the launch of the bitcoin futures it was thought that they would be unsafe, and that they would destabilize the economy, the investment product turned out to be a great success after launch.
CBOE and Chicago Mercantile Exchange (CME), two exchanges from Chicago, each launched their own bitcoin future products in December 2017. Shortly thereafter, the bitcoin rate rose to its all-time high (ATH) of nearly $ 20,000. It is unclear how much influence futures have had on this increase, but it is likely that they have had an influence.
After bitcoin reached its ATH, the cryptomarket ended up in the so-called crypto winter . Prices fell and people were convinced that the bubble had burst. Because of these falling prices and falling demand, CBOE decided to end its futures :
CFE does not add Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019, CFE is assessing its approach to how it wants to continue to offer digital asset derivatives for trading. Although it is considering its next steps, CFE is not currently planning to include additional XBT futures contracts for trading.
Since the exchange rates suddenly started to rise again in April, the competitor of CBOE, CME, saw the trading volume of its bitcoin futures rise to unprecedented heights. A new record was set for the fair on 26 June; Bitcoin futures were traded for $ 1.7 billion in 24 hours.
CME Bitcoin futures reached a record $1.7B in notional value traded on June 26, surpassing the previous record by more than 30%. The surge in volume also set a new open interest record of 6,069 contracts as institutional interest continues to build. $BTC https://t.co/WqXSPX0raR pic.twitter.com/HjGKb9a0ah
— CMEGroup (@CMEGroup) June 28, 2019
Part of this success of CME will have to do with investors who switched from CBOE to CME. However, it also appears that institutional investors are increasingly interested in bitcoin and other cryptocurrencies. This is expected to trigger an inflow of new money, allowing further increases to be achieved.
Cryptocurrency exchange Binance also recently launched its own bitcoin futures. Investors can use a leverage of factor 20. The contracts will initially only be offered in combination with bitcoin (BTC).