"We are the price mechanism for the contracts when they settle," Winklevoss said. https://www.cnbc.com/2017/12/09/bit...trillion-dollar-value-for-cryptocurrency.html What does this mean with respect to the CBOE Futures contract??
The futures exchange needs a cash market to reference for the final settlement price of the bitcoin futures contract expiry. The twins own one of the many exchanges that trade crypto around the world.
I don't think what he said had any meaning, because the CBOE has no real settlement connection with the crypto exchanges. Someone correct me if I am wrong. I don't think this is true. They tried to start an ETF, but didn't get the permit. What exchange do you think they own?
The apparently own an exchange called Gemini. Not to be confused with ISE Gemini. https://seekingalpha.com/news/3317368-winklevoss-bitcoin-multitrillion-dollar-asset
Oh yes, I forgot about that. It actually seems to be operational, although nobody ever mentions that they have money there. Also their price is $550 higher than Bitstamp's.
Thanks. I see now it's listed in the contract specifications. http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures/contract-specifications Description: Cboe Bitcoin (USD) futures are cash-settled futures contracts that are based on the Gemini auction price for bitcoin in U.S. dollars.