Bitcoin futures starts, grabs investors attention, prices jumped by 26%

Bitcoin futures starts, grabs investors attention, prices jumped by 26%

Bitcoin has exploded in popularly and volatility this year.

The price of a Bitcoin has risen from around $9,900 on November 30 to $17,000 on December 11, and with the attention that it has been garnering, the cryptocurrency is blurring the distinction between fact and fiction.

"If you look at the characteristics and properties of gold, like scarcibility, portability, visibility, fungibility, bitcoin equals or surpasses gold". Instead of being relegated to the confines of the internet and questionable Bitcoin and cryptocurrency exchanges around the world, Bitcoin has now found its way to the CBOE futures exchange in Chicago.

Bitcoin surged more than 40 percent in 48 hours last week, before tumbling 20 percent in the following 10 hours.

This article was first posted on Our Premium Trading Partner. The firms in question are REX Shares LLC and Van Eck Associates Corp. The market was sincerely hoping that things will get sorted out when the Wall Street gets involved, as they are known to use servers which can handle millions of transactions in milliseconds.

Among those cheering the launch are the Winklevoss twins, who have been called the first bitcoin billionaires.

Goldman Sachs Group Inc said on Thursday it was planning to clear such trades for certain clients.

While a new market opens it poses new opportunities to the investors. Understandably, it also lends itself well to something as volatile as Bitcoin.

Cameron's brother, Tyler, pointed out that some investors are concerned over what bitcoin is backed by, unlike the U.S. dollar which they know is backed by the Treasury Department.

Trading, which began at 6 p.m. ET (5 p.m. CT), was so intense that halts designed to cool volatility were triggered twice on the CBOE.

The price of a bitcoin has soared since beginning the year below $1,000, hitting a peak of more than $16,858 Dec. 7 on the bitcoin exchange Coindesk. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Anticipation of the first mainstream listings for the digital currency has been a catalyst for a sharp price increase in recent weeks.

Bitcoin futures expiring in January were 20pc higher at $18,040 early yesterday morning in New York from an opening level of $15,000, on 3,051 contracts traded.

The less anticipated futures contract for Bitcoin started trading today.

-CME will apply price limits, also known as circuit breakers, to its bitcoin futures of 7 percent, 13 percent, and 20 percent to the futures fixing price. That gave new oomph to the rally and debate. This group includes JPMorgan Chase, Bank of America Merrill Lynch, Citigroup, Barclays, Morgan Stanley and Societe Generale, said people close to the matter.

The futures are cash-settled contracts, allowing investors exposure without having to hold any of the cryptocurrency.