Why Are Bitcoin Futures Trading for Higher Prices than Bitcoin Itself?

in bitcoin •  7 years ago 

In an efficient market, prices in the futures and spot markets tend to converge. Bitcoin futures, however, are trading at a more than 10% premium compared to prices in the spot market.

Arbitrage opportunities
In an efficient market, arbitrageurs spot price differences and make contra-trades in both markets, netting a profit without taking any risk. In this case, arbitrage traders can sell Bitcoin futures and buy Bitcoins in the spot market, locking in a profit irrespective of the way Bitcoin's price moves. According to Bloomberg, Bitcoin futures command a premium of ~13% since trading began on CBOE on Sunday.

https://cointelegraph.com/news/why-are-bitcoin-futures-trading-for-higher-prices-than-bitcoin-itself

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Bitcoin still isn't an efficient market. The barrier to entry is still too high for the masses. But it's getting better.