As both CBOE and CME have released their respective Bitcoin Futures Contracts, Deutsche-Boerse would be wise to follow these results closely. The contracts, which settle in dollars and trade on regulated exchanges, can be bought by institutional investors that are prohibited from buying bitcoin directly on largely unregulated exchanges. "The CME futures are trading at a premium to Cboe futures, but the premium has come in a bit since the open", See said.
The launch of bitcoin futures is viewed as a major step in the digital currency's path towards legitimacy, which should encourage the entry of big institutional investors.
CME is a much bigger player in futures than CBOE so many expected its debut would make a bigger splash.
The U.S. Commodity Futures Trading Commission (CFTC) unveiled its new cryptocurrency resource website, which is aimed at educating the public about these wholly digital commodities.
On the Cboe, the contract for delivery for January ended at $ 19,055, with 3864 contracts exchanged, a contract corresponding to a bitcoin.
Early volumes have been light, and a short time ago around 460 contracts had changed hands on the most actively traded one-month forward contract. The margin for an S&P 500 futures contract, by contrast, is just 5 per cent, analysts said. The order book was pretty thin and "the orders that are there are very small". The company will not offer CME contracts until it demonstrates sufficient liquidity. Goldman Sachs Group Inc. demanded that some clients set aside collateral that equaled 100 per cent of the value of their trade. The guidelines are inclusive of other margin requirements such as Options Clearing Corp.'s 44 per cent, required to clear contracts traded at Cboe, and the 47 per cent CME is demanding. Short sellers face expensive trading The futures exchanges offer short sellers a way of placing short bets on bitcoin but even when the second exchange opened trading the price of bitcoin continued an upward trend in price.