Bitcoin Options are on the way

in cryptocurrency •  7 years ago 

LedgerX passes final hurdle:

The U.S Commodity Futures Trading Commission announced yesterday that it has granted LedgerX registration as a derivatives clearing organization under the Commodity Exchange Act.

Under this order, LedgerX will be authorized to provide clearing services for fully collateralized digital currency swaps.

The entire release can be read here:

http://www.cftc.gov/PressRoom/PressReleases/pr7592-17

This marks the final hurdle for LedgerX to begin trading options contracts.

They were initially granted an order of registration as a Swap Execution Facility on July 6, 2017. 

I wrote about that originally here:

https://steemit.com/cryptocurrency/@jrcornel/wanna-trade-bitcoin-options-we-just-got-one-step-closer

Some specifics:

LedgerX said that they plan to offer options contracts initially in the one to six month time frames. At first they will be primarily based around Bitcoin.

From there, there are plans to expand the virtual currency base to include Ethereum as well as a couple others. 

Also, longer dated options are expected to be added as well as the platform matures. 

Options will start to be offered in the late September to early October time frame. 

What this means?

It likely paves the way for large institutional investors to get involved in Bitcoin and possibly some of the other virtual currencies.

Given the volatility of the cryptocurrency markets, it has been a tough sell to get major financial institutions involved. However, now that options are an "option" it allows them to greatly mitigate some of the volatility via hedging.

It also allows for speculators to take on even more volatility should they so choose.

On the flip side, it will also make it easier to make bets against the virtual currency space. There is always the chance in smaller markets like these that large players make big options bets and then manipulate the markets to move in the direction of their bets.

Buying large amounts of puts and then spreading fud is one option that likely will be tried at some point.

Overall though, I think this is great news for Bitcoin and the entire space. Anytime we can add more would be investors, speculators, and traders the better off we will be.

In my opinion this is going to increase the investor base, possibly pretty substantially. 

Stay informed my friends!

Sources:

http://www.cftc.gov/PressRoom/PressReleases/pr7592-17

https://www.bloomberg.com/news/articles/2017-07-24/bitcoin-options-to-become-available-in-fall-after-cftc-approval

Image Sources:

http://www.wallpaperup.com/678752/BITCOIN_computer_internet_money_coins_poster_binary_code.html

http://www.zerohedge.com/news/2017-07-08/cftc-approves-options-trading-bitcoin

https://www.bitcoingg.com/bitcoin-gambling/binary-options/

Follow me: @jrcornel

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Good news for Bitcoin! Again!

informative stuff

This post received a 4.2% upvote from @randowhale thanks to @abbasfxtm! For more information, click here!

If it wasn't for @randowhale who would be so kind enough to share a 4.2% upvote. You guys awesome! Thanks for being out here for the community! @jrcornel Thanks for sharing your knowledge on Ledgers with the community! :)

First I'm seeing this action. Is this like a self-upvote? or is this less frowned upon?

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Man, I wish I could buy some Bitcoin options right now!!!! Price is going to rocket this weekend because of the short squeeze on the exchanges:
Why the $BCC Fork Will Cause a Short Squeeze in Bitcoin That Affects You

Get on whaleclub, and put in a buy order for 5x leverage. Once it skyrockets you'll make bank man!

I saw that news yesterday and I must say it's the biggest non fork relating news regarding Bitcoin in months if not years. Thank for bringing this one up on Steem @jrcornel!

  ·  7 years ago (edited)

f the options are not on a decentralized platform, it will be an very easy target for SEC and Feds to take it down or regulate the hell out of it.

If the options exchange was built on EOS, it would be most ideal as it offers decentralized, anti-ubiquitous surveillance but most of all, very stable and millisecond transaction times. More importantly, no SEC intrusion!

This is awesome. How can people get involved in these kinds of options? Is there a date when they anticipate they will release their first options contracts?

good to know, thanks!

I don't think btc needs the approval of banks, but sure it helps.

That are great News....

Great post! Thanks for information.

Cheers! from @thedamus

Strange... i just upvoted your post @ 50%, which should be about $0.26, but the figure went from$95 to $149 -- that is awesome!!!

Cheers Man! You've got the power!!!

It's because other people upvoted the post at the same time, or in the mean time while your page had not yet refreshed. When you hit the upvote button, the page refreshed and you were able to see the new amount, but it looked like you were the one who contributed the difference.

  ·  7 years ago (edited)

O i c... thx for info -- i thought there was some kind of Supersteem thing going on.
Now following u2 ;)

me2

It may bring more investors, but also more games... manipulation is sure to follow.

Yep, I agree with this 100%. There are certainly going to be downsides. One is that people can now buy bitcoin options (long dated calls) instead of the underlying asset, which may or may not actually push the price up. Overall I think the increased exposure will be a net positive, but it certainly isn't all rainbows and puppy dogs regarding this news.

Hopefully it does not occur in other than Bitcoin. If it goes to ETH, the shift to EOS will be massive.

Bitcoin is growing up!

Hey @jrcornel we just starting following you and upvote your Post. We like the fact that you are using the news of today that pertains to the Cryptocurrency Realm with the fellow Steemians here.

What do you guys think about this decision that the CFTC had made recently?

Good or Bad?

Ultimately I think it will be good as it will open the doors to a wider investor base. People are a lot more likely to invest in Bitcoin if they can hedge their bets to the downside. Thanks for the follow! I am following you as well :)

  ·  7 years ago (edited)

IMO, short term is good, long term is not so good/vague. Using margin trading by institutions and banks combined with "current volatility" in cryptocurrencies can be very dangerous.

Also it's a great way of manipulating Bitcoin price- the same way they're manipulating & suppressing gold/silver prices.

Good news, good news. Because there is still more volatility in bitcoin than most institutional investors are used to, this looks like a nice on ramp for their interest and speculation.

My thoughts as well.

Great information thank you

This is great news, not only will it increase the investor base but its another step on the road to main stream adoption! Not sure about the impact on volatility if you can easily short the market but its a great step forward in any case!

hey love the comments and posts and was just wondering if you dont mind can you folow me please it would be very helpful as a fellow steamian and i will follow back of course if you drop a comment on my recent video, i talk mainly about video games as i am a true gamer.

I had to restem this post this info is major

Wish i fully understood what futures and options are. Either way this is good news more people on the blockchain the better :D

33a7053d6bc5390c1c42af7232d3748b0aaa88789eda2112a5172121988ed552.jpg

It's the wild west. Should be exciting and dangerous...

@jrcornel. I agree that the hedging opportunities that become available with options can help regulate some risk, making deals future proof to some extent and hence large multinationals and financial institutions will look at the crypto currencies as better trading instruments. At the same time, since the market cap of crypto currencies is so low compared to traditional trading space, this will also attract rogue firms who will manipulate the value by pump and dump kind operations designed to move the currency rate towards their preferred position. You have correctly highlighted this. Well, for every good tool, there is also the risk of improper use. However, overall, this will enhance the acceptance level of crypto currency in financial markets. Therefore it is a good thing in my opinion. Thank you for sharing this important update and your expert views on it. Upvoted.

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Yep, my thoughts exactly. Thanks for commenting!

Good post, my only concern is the cryptos get manipulated like the fiat markets.

This is a great info @jrcornel and an evidence that crypto currencies are here to say. I am glad about this info because some are attacking and calling it ponzi. Hope all goes well with bitcoin come August first. Upped.
Feel free to see my latest blog post : Why are Ignorant people Calling Steem & Bitcoin A Ponzi Scheme

Thanks and keep steeming.

Whoah! I thought options were already available. But it's great to see options coming to the market!

This is the first one to have the approval of the CFTC.

Great article! Time will tell

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Great article. This is so crazy how far bitcoin has been able to come thus far. Whats next, CDO's and MBS's in bitcoin?

well post. good job.

Thank for your information mybro

Now the powers that be can start manipulating / suppressing the price of Bitcoin using these derivatives. Just like they do with gold and silver using paper derivatives. They do not want cryptocurrencies to be attractive alternatives to the stock market.

Wow his post is very complete, research you made is very nice

100% upvoted. Followed.

This fantastic news for, because it is progress for both developers and traders. It should only grow and expand bitcoin. Yes as a trader I am aware that their are wealthy traders that can move the market there way but I am still happy about the work that developers and others has achieved

very interesting, I knew it was just a matter of time, there will also be a real BTC exchange traded fund created soon and probably an ETF for Ethereum and as well an Index fund like Tai Fu's that covers the entire space. This can be good, however as we have seen with Silver, JP Morgan and the like - in tandem with the Federal Reserve and Government can put pressure on asset classes they see as threats to the current monetary system. I would speculate that "Crypto" falls into this "Threat" category, and the powers that be may find it in their best interests to suppress prices on Cryptocoins. However that is yet to be seen. Thanks again, this is interesting information, upvoted, resteemed cheers

This is good news and will alow more money to float into the bitcoinworld.

we simply beginning tailing you and upvote your Post. We like the way that you are utilizing the news of today that relates to the Cryptocurrency Realm with the kindred Steemians here.

What do you all think about this choice that the CFTC had made as of late?

Great or Bad?

Hi @jrcornel - I made a similar post on this this morning. Please have a read and see if you like it too.
https://steemit.com/ledgerx/@attalis/breaking-ledgerx-now-enabling-institutional-cryptocurrency-investments-in-u-s

lot of information you provoid about bitcoin i like :)

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Nice post. Upvoted and following you. Please visit my blog @bikash-tutor and upvote and follow me. Thank you.

Nice post, great content.

you are amazing, knowledge you have shared is awesome man

Interesting post, but what I wanna know is how you made $90 in 6 minutes lol

Now $176 in 24minutes... i'd like to know too :)
I upvoted you JC, but alas, i am just a minnow.

This is a great news. Hoping that this becomes reality and cryptocurrencies see a new dawn.

awesome post brother

nice bro

thanks for the information @jcornel. If I may ask, will this lead to the increase in prices of Bitcoins? I mean if there are more large scale buyers, will the demand be enough to exceed supply leading to the rise in value of Bitcoin?

Thanks for sharing..
Upvote and Resteem @jrcornel

Thats interesting news . Time will tell its impact .

Very useful information

thanks for this post...well done and important

upvoted. Followed.

I cant wait for options. So much opportunity!

great work, thanks for sharing this info...... , nice to see this:)
upvoted you.

lets see the manipulations take place even more

well many people are still doubtful about cryptocurrency because of it's volatility. to get more traders on platform it'll surely take sometime maybe 3-5 years down the line. what do you say guys?

a very good post

@azman

that's interesting, speculators take market share and driving Bitcoin acceptance :)

Looking forward to this! This will hopefully help kill the stupid premium on GBTC.

Yeah, the options game will add A LOT of new players. New players means more funds being traded and increased volume is a good things at this point of the time line.

Plus, I've traded options for more than a decade. I'm looking forward to the ability to place some bets with options on BTC when I want to speculate.

Interesting and actual information, thanks for the information

When large trading institutions get involved we will see another large boom.

When crypto's align with their financial interests we will see a whole new level of positive press.

Speaking of big institutions, I heard a rumor that MacDonald's might soon be accepting bitcoin...do you know if there's any truth to that?

if the options are not on a decentralized platform, it will be an very easy target for SEC and Feds to take it down or regulate the hell out of it.

If the options exchange was built on EOS, it would be most ideal.

useful! nice job!

always exciting to have some positive news as regards the crypto world

The end is near!

About time! Better late than never. #optionsareopportunities

IF this happens it will be a great thing for bitcoin..

  ·  7 years ago (edited)

Bitcoin is probably the largest asset class in the world that did not already have an official derivatives market.

"Buying large amounts of puts and then spreading fud" --> can someone explain what this means in lay terms?

This will be a ride. Can you imagine the implied volatility levels these will be!? The historical volatility over the last year is 400 (BTC going from $600 to over $2400...). Hopefully weeklys are avoided as they definitely lead to more market manipulation at the expiration end-of-week and as the article says small cap coins are going to be pushed around...even more.

Very good post @jrcornel
Upvote, Follow and Resteemed
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