Seeing bitcoin trade alongside, gold, eurodollar, tbills, and S&P brings bitcoin into the mainstream. It will allow millions of new investors to access the alternatve digital asset class through their banks and brokers. There will be new risks including market manipulation risks.
These futures are cash settled. There is no actual delivery of bitcoin. If volume on the futures becomes larger than the bitcoin exchanges, market manipulation will be a risk.
Example: I buy 10000 January 2018 bitcoin futures. Minutes before expiry, I see that the market depth on one of the reference exchanges is thin. I hit the exchange with “buy at market” orders for 3000 bitcoin. The price shoots up from $10’000 to $1 million. Now the sellers of the future will need to pay me out in CASH, based on the photograph of that price.
Of course the market-makers will screw me over if I do that. They will say it’s a repetition of what the Hunt brothers did. They were the “Silver Bulls” who bought up all the physical supply of silver while being long the futures. The price of silver crashed after new rules were brought in to stop them rolling all their contracts. They became forced sellers.
Below you can see the CME announcement from http://www.cmegroup.com/media-room/press-releases/2017/10/31/cme_group_announceslaunchofbitcoinfutures.html
IMHO I think the Rockerfellas, Rothschilds, Soros and other wealthy powerful elitist are way more involved then we think! as for btc whales, the powers that be are obviously turning a blind eye, keeping prices within range of institutional investors.... seems like the btc whales are doing the "crypto illuminati" a favor, by manipulating a market that they really dont know much too much about... and the elites are allowing it cuz it seems to benefit them in ways we cant even fathom>>>>> just sayen!
History has shown that these elites have manipulated markets before! in fact back in the dayz, its how they made there wealth>>>>> besides, bootlegging, murdering, drug dealing, racketeering, embezzling etc. smh!
Just this week the SEC opened an investigation into the manipulation of bitcoin prices and the futures. No smoke without fire....
yes... I find this whole futures thing to be a problem.
Futures trading on bitcoin, wow.
Sort of like betting on 2 flies crawling up the wall, no wait we do that & it's OK.
But BTC futures??....no way IMHO, just greed getting in the way of good sense.
Just plain greed. I've seen lots of technical analysts claim crypto to be pure and mostly without manipulation. The bankers and financial goons are trying to make a buck on the very first application of blockchain tech which would eventually kill them.
They fought Bitcoin. Now they are trying to get on bed with it and make a buck. A volatile market like crypto doesn't have much use of futures. This is what's going to get people burnt. Blockchain is a beast. Trying to manipulate it won't go well.
Manipulation of the blockchain??
That is not going to happen
Not of the blockchain technology itself no. Until the largest mining farms get together and realise they are ‘the bank’...
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