Bitcoin made an entry in to the largest futures market Chicago mercantile exchange (CME) on Monday as bubble warnings grew louder than ever!
The CME is the second exchange to launch Bitcoin trading after the CBOE which started earlier on. The CME’s most popular contract expiring on January traded at $19,100 which represents a slight fall for the prices on Monday when it first started trading at $20, 650. The prices were less charged with decreased volatility than the initial 19% charge a week ago when CBOE started trading bitcoin.
CME traders thoughts about the event
Joe Van Hecke, founder and managing partner at Chicago-based trading firm Grace Hall, said that people were expecting a similar event to the CBOE futures exchange going by the aggressiveness of the bids.
Van Hecke, who happened to be among the first people to start trading at both the CBOE and CME Bitcoin futures, thinks that more institutional level investors are taking part in the CME Bitcoin futures.
The CME futures contract represented 5 bitcoins unlike the CBOE options exchanges whose contract represented 1 bitcoin. Exactly 1,049 contracts were traded at the CME which represent arund 5,245 bitcoins. This was relatively higher than the CBOE which traded 3,860 Bitcoins partly because CME is better known than futures.
The CME January contracts received more attention compared to the February and March futures. The price of bitcoin has also slightly fallen, currently down 1.6% at $18,640 - having hit a new all-time high near $20,000 last night.
GROWING BUBBLE FEARS
The warnings against bitcoin trading are getting louder with the Danish central bank governor terming bitcoin as dangerous and warning investors against the same. The same sentiments were echoed by the Turkish central bank.