First Bitcoin Futures Contract (Part 3)

I will try to cover some topics on this groundbreaking event of the Bitcoin network in my last two posts. There I tried to explain about the background of the event and what are the future contracts and how it is working in the volatile crypto market. Today I would like to share this historic move in 2017.

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On December 10, 2017, CBOE Global Markets made history by launching the first Bitcoin futures contract under the ticker symbol “XBT.” The event marked the first time Bitcoin had been offered on a mainstream, regulated financial exchange. Initially the entrance for the institutional investors was not so easy. It has created a big investment opportunity for many. It was a pivotal moment that opened the door for a broader range of investors, particularly institutional investors, to enter the Bitcoin market. Why was this such a big deal? Until this point, Bitcoin was viewed largely as a speculative digital asset that lacked the backing or legitimacy of established financial products. By offering Bitcoin futures, the CBOE was essentially endorsing the crypto as a legitimate asset worthy of investment and speculation on Wall Street.

The previous days were struggling for the traders as the market was highly volatile and no guarantee of the futures. But after the event it was so easy as the future contracts can be done and how this is making a hedge of bitcoin have been explained in the last post which you can go through. The introduction of Bitcoin futures also offered traders a way to short Bitcoin—betting that its price would go down—something that was not easily achievable for most retail traders before this point. With the ability to go long or short, the market became much more versatile, attracting traders from both sides of the bet. In that way the market got some hope for the future. And in the next post I shall try to show the impact of the bitcoins price after the event.

~ Regards,
VEIGO (Community Mod)

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