The CME got official clearance from regulators that they can launch futures products starting December 18th.
The Commodity Futures Trading Commission (CFTC) officially stated that it will allow the CME as well as the CBOE to launch bitcoin futures contracts.
The former of which is scheduled to launch as soon as 2 and half weeks.
More on the release can be read here:
https://www.cnbc.com/2017/12/01/cme-says-its-launching-bitcoin-futures-on-dec-18.html
This represents a major milestone for cryptocurrencies.
For the first time bitcoin and cryptocurrencies will be brought to major Wall Street firms.
To this point, most firms were reluctant to purchase bitcoin/cryptocurrencies because of the lack of oversight and regulation of the markets they trade in.
Which were completely rational concerns considering all the risks.
Just to name a few of the risks off the top of my head:
Numerous exchanges have been hacked as well as committed some type of fraud over the years, which represented too great of a risk for most institutional type of funds to take.
Then there was also the secondary risk of losing their wallet keys or something of the sort.
On top of those risks, there was also the inability of funds to hedge their bets if they decided to get involved in the space.
Now, just about all of those concerns have been mitigated.
These new investors don't have to worry about hacks or losing wallet keys as they are going to be buying products from reputable exchanges that also have insurance.
There also is no risk of losing their wallet keys as they can buy these products directly in their brokerage accounts.
This is expected to bring in lots of Wall Street money to the space.
The question on everyone's mind is, what will happen now that major firms will have the ability to short these things?
The "short and distort" strategy has been used successfully for decades on many smaller market cap firms and smaller asset classes. I am sure it will be tried here as well.
In fact many in the silver market claim that large institutional money has successfully kept a lid on that market for the better part of 3 decades now.
Will the same thing happen to bitcoin and cryptocurrencies?
I certainly hope not, but we will know a lot more over the next couple months.
My personal opinion is that all this new money might orchestrate a massive run up in prices where they then decide to put on massive short positions and run the prices into the ground.
We will see.
Stay informed my friends.
Sources:
https://www.cnbc.com/2017/12/01/cme-says-its-launching-bitcoin-futures-on-dec-18.html
Image Sources:
http://btcrumor.com/the-love-hate-relationship-of-bitcoin-vs-wall-street/
https://qz.com/1141524/bitcoin-price-at-11000-as-nasdaq-plans-bitcoin-futures/
Follow me: @jrcornel
Hey jrcornel,
Thanks for the great content
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Always seems suspect to me when big money gets in on a product, it really opens the doors for manipulation. Especially if you look at from the perspective of BTC was supposed to be the Anti-Wall Street currency of the people; freedom from banks and all that. So when the competition starts buying your stock, you have to wonder what their end game is.. I say don't let Bull fever put blinders on us. Make money trading but keep an eye on the bigger picture. @pawsdog
https://steemit.com/bitcoin/@pawsdog/12-3-2017-the-market-view-and-trading-outlook
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I really dont think this is good news for Bitcoin for the long-term. Wall Street guys are really good at setting up things the way they like. I guess we will have to wait and see
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Don't worry wall street is 100% honest ; ) I fear the naked shorting they have been using against gold is about to be unleashed on Bitcoin. Wait and see is our only option unfortunately.
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Haha, Yes ! Their Moral compass outweighs their greed for money at least tenfold :D
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It is impossible for them to do that with cryptocurrencies, it is too global and accessible and it is not cryptocurrencies coming to wall street, it is actually the other way around.
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I really dont have an idea what is the amount of "dumb money" in Crypto , or lets say Bitcoin, but I would guess that it is substantial. Bitcoins market cap is ~200 B. If people with deep pockets decide to corner the market I dont think it will be that hard to do.
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What will happen is that other coins will just start growing faster. Remember this is not oil, gold or some other commodity. This is something that the billions of un-banked people around the globe will be involved in on all levels like mining, development and trading. This is truly a game changer in the realest sense of the word.
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I guess you have a good point. Lets wait and see :)
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Bitcoin Heads to Wall Street Whether Regulators Are Ready or Not.
New high coming soon, best way to trade long #bitcoin with high leverage on BitMEX: https://www.bitmex.com/register/HJfZyC
Users who have signed up with my affiliate link will receive a 10% fee discount.
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2018 is Crypto year... With all new $$$ coming to market I am so bullish and more ppl talk about bubble the more I am spending on crypto ;)
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Correct, the market can't have a major correction until all of the pundits are crying from the rooftops "Buy Bitcoin!"
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And there will be more regulations and I expect ICOs will melt down. The way of raising funds for ICO will change for ever
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And if dragonslayer theory is true, and the attacker shorts bitcoin...
https://steemit.com/dragonslayer/@codemojo/operation-dragonslayer-info-from-a-hongkong-investment-banker
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I'm pretty sure about longterm harm from these guys (Lehman Brothers, duh, CDS, duh), but undoubtedly - let the money flow and wall street has plenty of them.
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That good information for all of us. we just wait and see. good luck every one.
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I didn't know the news. I mean steemit is great app. Thanks for nice news
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very very importen news
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The good news is this adds a ton of legitimacy to the cryptocurrency world.
The bad news is the bankers are now involved.
That said, I am optimistic...Wall Street will bring a ton of cash. That means that many tokens will be bid up severely. People are scared of banks but we are in for a 2-3 year bull run because of Wall Street.
In that time, the banks might find they are under even more attack. The blockchain is going to clean their clock. Banks will still be around but their power isnt going to be as large. BTS is already being set up as one chain that is meant to really inflict damage on the banking sector. There will be more.
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Short medium term very very good IMO. It could help Bitcoin get to where it should be (500k-1 million) but after that it would have an impact in the form of inhibiting price volatility. Which at that point doesnt really matter to anyone that owns 0,1 or more BTC today :)
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500k to 1mill = retirement for me!
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I think you are right its great to be accepted into the establishment but this can also be trouble. Decentralization will be of little value at this stage if big shorts want to swing the market they will. I don't know at what point Bitcoin will be able to reach escape velocity from the shorts but there is probably a point in the BTC/100,000s that will pass the point of no return unless of course as Jamie Dimon hinted the government decides to make it illegal. Like FDR did with gold bullion in 1933.
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Agree. I believe that institutional investors will first go long and they will ride the bull trend. After masses jumps in, they will start going short and cryptocurrencies will crash, but short term. Long term only the "best" will survive.
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Well yes they will play their usual games but for the foreseeable the overall trend will be up.
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I agree. But this will take few years. There are 58k people still waiting for 9 years for Kushner to make his 1st tweet. When they decided to jump in, wall street will swiftly clean the market. 👇
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This is about to get crazy!
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As long as there are markets there will always be someone who will try to profit from shorts.
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I think this could be another milestone from bitcoin.
No wonder I tagged 2017 the year of "digital currency".
This signifies long term in crypto investments
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Those wall street gangsters will probably take it to the Moon and then spartan kick it back to Earth. It will be interesting.
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HODL; the only thing we have to do
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This is a big development. Thanks for sharing. In the long run, I think the big money will manipulate it, just like it does with other commodities. But it will be good for the world to have cryptocurrencies be more widely applied and distributed.
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I agree. Things are about to change big time in the space in T-minus 2 and half weeks.
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You did a nice job of outlining the news today, with some extra spice.
Silver Market:
We believe the government has been giving out secret "handshake" licenses to large banks (large as in JPM size) to naked short gold and silver, and this has helped put a lid on price expansion-- as in see 2011. This may INDEED be the case with bitcoin as well, as bitcoin is smaller market and therefore more easily manipulated by using a paper form of trading such as futures.
Bigger issue for bitcoin longs:
When commodities have gained an ETF, typically the underlying commodity has traded upward into the ETF introduction, and then sells off. So that would mean the hype-train for bitcoin would arrive on Dec 18, and it's MORE likely there'd be a lot of sellers. Not even talking sophisticated sellers, I'm talking Mom & Pop are even aware you're supposed to "buy ahead of the news" and then sell when prices pop.
So yeah, buyer beware, and good luck. Hey, sometimes, like with Segwit2x, they buy ahead, it doesn't materialize, the price sells off, the punters don't sell, and new highs are reached! It's the Wild Wild West man!
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The banks want to limit the rise of crytos like them have Gold, silver. Now they can issue futures and hold down the price. You knew they would come up with a plan to keep their plummeting currency still relevant compared to crytos..
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This is great news! The crypto train cannot be stopped!
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You write the best articles @jrcornel !
Thanks for the info.
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It's a good news.
More money for us - cryptocurrency holders :)
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muzakirpb upvote, posting is perfect
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wow great news..i clear this subject..thanks for sharing...
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It'll be interesting to see how the market will react to the CME as billions of wallstreet money can now influence the crypto market. Its no longer a miners and a dreamers game.
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