CBOE Bitcoin Futures: How Will They Work and Can I Invest With Them?
Bitcoin has been the surprise big winner of 2017, with prices having soared higher as the cryptocurrency gains credibility among a broader set of users as a store of value. One thing that's prompted the latest rise for bitcoin is the rollout of bitcoin futures contracts, which CBOE Global Markets (NASDAQ: CBOE) plans to open for trading on Dec. 10. Other providers, including CME Group (NASDAQ: CME) and Nasdaq OMX Group (NASDAQ: NDAQ), are also considering bitcoin futures rollouts, with CME hoping for a Dec. 18 launch. But with CBOE looking like it will be first to cross the finish line, would-be bitcoin investors want to know what CBOE bitcoin futures will look like and whether they can use the futures contracts to take positions in the cryptocurrency. Here are the answers you need.
The CBOE intends to launch bitcoin futures trading at 5 p.m. CST on Sunday, Dec. 10. It might seem strange to ordinary stock investors for a product to start trading on a Sunday afternoon, but the launch time accounts for the time difference between U.S. and Asian markets, allowing investors in Japan, China, and other Asia-Pacific countries to start using the futures contracts when they open for business Monday morning.
The current contract specifications call for each CBOE bitcoin futures contract to cover a single bitcoin. That would have seemed like a small amount just a few months ago, but with prices having soared past the $10,000 mark, the decision seems smarter now.
Source: Fool.com
