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Launch of Bitcoin Futures likely to boost Gold

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NEW YORK (Scrap Register): The launch of Bitcoin futures could mean some short selling in the cryptocurrency that in turn results in safe-haven demand for gold, said Phil Flynn, senior market analyst with at Price Futures Group.

Cboe Global Markets Inc will launch futures contracts on bitcoin on December 10. The Cboe Bitcoin Futures Contract will use the ticker XBT and will equal one bitcoin.

CME Group has announced that it has self-certified the initial listing of its Bitcoin futures contract to launch Monday, December 18, 2017.

The cryptocurrency has soared this year, with some analysts lately suggesting that it may have entered bubble territory after a parabolic move higher.

Up until now, it was hard to short, or take out a bearish bet, on Bitcoin, Flynn pointed out. But that will change when the currency starts trading on exchanges, and some traders very might well bet that cryptocurrency will pull back. If we get a big correction in Bitcoin, gold could get a safe-haven bid, Flynn added.

The new contract will be listed on and subject to the rules of CME.  It will be available for trading on the CME Globex electronic trading platform, and for submission for clearing via CME ClearPort, effective on Sunday, December 17, 2017 for a trade date of December 18.

CME Group's Bitcoin futures will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.

Since November 2016, CME Group and Crypto Facilities Ltd. have calculated and published the BRR, which aggregates the trade flow of major bitcoin spot exchanges during a calculation window into the U.S. Dollar price of one bitcoin as of 4:00 p.m. London time.

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