Bitcoin falls after CME Group launches bitcoin futures
A man walks past an electric board showing exchange rates of various cryptocurrencies including Bitcoin (top L) at a cryptocurrencies exchange in Seoul Thomson Reuters
- CME Groups' market for bitcoin futures launched Sunday night in Chicago.
- The underlying value of bitcoin dipped slightly.
- Early volumes were similar to those seen on Cboe Global Markets last week.
Bitcoin futures launched Sunday night on the Chicago-based CME Group's exchange venue.
Early volumes were light, and just before publication 354 contracts had changed hands on the most actively traded one-month forward contract.
The value of the forward contracts fell as low as $18,775, down $725 from the opening value of $19,500.
Just before publication, one-month contracts expiring in January 2018 were trading at $19,005.
CME Group is the largest futures exchange in the world. Its new market for bitcoin futures is expected to add more liquidity to the market after last Sunday's launch of future’s trading on Cboe.
“This market should see way bigger volumes. CME is a way bigger player in futures than Cboe,” John Spallanzani, chief macro strategist at CFI Group, told Business Insider.
Once CME futures trading commenced, the value of spot bitcoin on the composite index provided by cryptocurrency watcher CoinDesk was initially little-changed at a value of around $19,260.
Since then, prices have declined, and at last check bitcoin was trading at $18,230.92.
Garrett See, the CEO of cryptocurrency trading firm DV Chain, told Business Insider that early volumes were similar to those seen on the Cboe exchange last week.
“The order book is thin. The CME futures are trading at a premium to Cboe futures, but the premium has come in a bit since the open,” See said.
The CME exchange may see higher volume overnight as markets open on Monday morning in the US.
MI
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