Price Difference In Bitcoin Futures and Spot Markets Presents Arbitrage Opportunity

The Bitcoin ETF Race is Quickly Intensifying

The Bitcoin ETF Race is Quickly Intensifying

Only a question of "when" is more appropriate.

The notice states that Dealer Members must mark-to-market and margin exchange-traded cryptocurrency futures contract positions daily at the greatest of (i) 50% of the market value of the contracts; (ii) the margin required by the futures exchange, such as the CBOE, on which the contracts are entered into; (iii) the margin required by the futures exchange's clearing corporation; and (iv) the margin required by the Dealer Member's clearing broker.

But now it looks like it is set for a move higher.

The start of futures trading on the Chicago Board Options Exchange has been slow and steady.

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The bank is one of a handful that have cleared the trades since the Cboe began offering futures contracts earlier this week. Bitcoin has slowly inched up from $16,400 to around $17,600 where it now trades, things could heat up again over the weekend though as more futures contracts will be launched. At the time of writing, Korean exchanges priced bitcoin more than $1,000 higher than many exchanges that offer direct trading against the USA dollar. Such exchange operator as Nasdaq is expected to list bitcoin futures in 2018. We want to watch that market open and become an orderly marketplace and see who the participants are in that marketplace. "That will allow the entry of hedge funds and larger institutional players, who may have a very different notion of bitcoin's future". This month, bitcoin has climbed more than 80 percent - on pace for the best monthly gain since December 2013. Some experts have started to predict that bitcoin might even reach $24,000 by the end of the year, but $20,000 seems like a more reasonable figure. And also that the biggest Bitcoin miners in the world are not only not based in the US, they are also not built to trade financial instruments. Because there is not enough liquidity, the volatility of bitcoin's spot markets is not being ameliorated in its futures contract pricing.

Bitcoin, the largest cryptocurrency in global markets, clocked an all-time high price of $17,448 on Tuesday, according to Coin Desk's price index.

"If you want to get involved in being short bitcoin, you can consider the margin as acting as a deterrent, but it is certainly sufficient to cover the event that the client gets caught in a locked market and they will wear though their money before they wear though our money", added Wilkinson.

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