CME Group Announces Launch of Bitcoin Futures

Discussion in 'Crypto Assets' started by SumZero, Oct 31, 2017.

  1. Sig

    Sig

    I agree that the exchanges to a horrible job of rolling out new products with almost an entirely "build it and they will come" mentality. I would think the universe of people interested in weather derivatives vs the universe of people interested in bitcoin are night and day, but again Nadex didn't get much interest so maybe not. I'm also not sure that there are many brokers for retail traders to access the weather or insurance futures easily, am I wrong on that?
     
    #51     Nov 3, 2017
  2. Maverick74

    Maverick74

    You can trade weather on CME and ICE. And Winton is about to launch a series of products entirely devoted to weather.
     
    #52     Nov 3, 2017
    .sigma likes this.
  3. Maverick74

    Maverick74

    Bone, I think BTC will follow the path that VIX had at the beginning. Technically there was no fungibilty there either from a practical sense. At the beginning no one understood it and cries of manipulation occurred regularly. I suspect there will be a premium in the forward curve for BTC futures with spot price converging with the futures relatively speaking going into expiration.
     
    #53     Nov 3, 2017
    garachen likes this.
  4. Maverick74

    Maverick74

    I'm actually looking forward to trading the BTC curve vs BTC flat price.
     
    #54     Nov 3, 2017
  5. bone

    bone

    Looking at BitCoin Volatility I'm not convinced that the futures margin requirements would be able to attract such a wide swath of retail traders. I'll put it another way - the contract spec (which is not finalized) would have to utilize a really really modest notional value in order to be affordable for retailers. You're talking vols at present that surpass many typical electricity markets which is mind numbing. I'm also of the mind that the Risk Managers at retail futures brokers are going to be really anxious about firm exposure.
     
    #55     Nov 3, 2017
  6. Maverick74

    Maverick74

    They will probably have a full size and a mini version for the home gamers. That will bring in some arb players which usually helps some with liquidity.
     
    #56     Nov 3, 2017
  7. bone

    bone

    Well, Mav, your experience with distillates should put you in the right mindset at least.
     
    #57     Nov 3, 2017
  8. Maverick74

    Maverick74

    Bone, do you know if there is historical data on this BRR reference rate?
     
    #58     Nov 3, 2017
  9. bone

    bone

    Any ERCOT real time traders out there ? Go try out BitCoin.
     
    #59     Nov 3, 2017
  10. bone

    bone

    #60     Nov 3, 2017