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The Wall Street Banks Revolt Against Bitcoin Futures

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Wall Street banks are looking into future bitcoin futures, claiming that the financial system does not Is not ready with a continuous rise price.

It seems like every new day brings a new bitcoin price. Earlier today, it was reported that digital currency had crossed the $ 15,000 mark, raising for the first time its market capitalization to more than $ 250 billion. It was after the news of yesterday that bitcoin had climbed from $ 12,000 to $ 13,000, ahead of the next term launch.

On December 10, the Chicago-based stock exchange, Cboe Global Markets, will launch its bitcoin futures, followed by its fellow Chicago, CME Group, on December 18th. It was after both had received approval from the Commodity Futures Trading Commission (CFTC) last week.

Nasdaq, which plans to launch Bitcoin futures in the first half of 2018, would like to follow in their footsteps. However, he seeks to position his product differently from the two Chicago stock exchanges. Inspiring from its American rivals and seeking to embark on the frantic rush of bitcoin trading, it's the Tokyo Financial Exchange. On Wednesday, it was reported that the Japanese stock market should support bitcoin as a financial product by launching its own futures product on bitcoin derivatives.

Yet, despite these positive moves, which would allow investors eager to trade bitcoin as an asset via a regulated market, large brokers have become accustomed to criticizing the move.

In a draft letter from the Futures Industry Association – an industry lobby group whose members include banks such as JPMorgan and Goldman Sachs – at the CFTC, the implementation of the bitcoin futures contracts n & rsquo; Did not allow for proper transparency and public contribution. reports the Financial Times, who would have seen the project. It should be sent to CFTC today.

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The CME Group and the Cboe both agreed to operate under a self-certification scheme for their contracts. However, this means that regulators will have little time to review them. According to the letter, a self-certification scheme for "these new products does not match the potential risks that underlie their trade and should be reviewed".

According to the FIA, its members have reservations about the reliability of the prices underlying the bitcoin futures contracts. This month, the value of Bitcoin has increased by more than 50%. However, its price can fall as quickly. At the end of November, digital currency plummeted nearly 20% in 90 minutes after intermittent interruptions during cryptocurrency trades struggled to keep up with demand.

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