With values eclipsing $15,000 apiece, Bitcoin has seized the attention of the financial community and transformed many skeptics into enthusiastic participants. The surrounding buzz has given rise to deep cash markets and exceptional volatility — two characteristics especially attractive to traders and investors. In order to satisfy public demand for all things Bitcoin, the CME Group, Cboe, and Nasdaq decided to launch standardized Bitcoin derivatives.
To help traders engage in these new and exciting markets, Daniels Trading is now offering XBT Bitcoin futures contracts to clients, with BTC futures trading coming soon. If you are interested in trading Bitcoin futures, you can get started here.
What Are Bitcoin Futures and Why Should I Trade Them?
Bitcoin futures are a brand-new derivatives instrument that give interested parties an opportunity to participate in Bitcoin without assuming ownership of the underlying commodity. They’re standardized, regulated, and traded alongside the contracts of energies, metals, and agricultural products.
Similar to international CFDs, Bitcoin futures are a viable means of trading the relative value of the underlying asset. Up until this point, the only option for individuals in the U.S. has been to directly own Bitcoin and cash out via cryptocurrency exchange. Bitcoin futures eliminate the risks associated with cryptocurrency exchanges and digital storage. In essence, it’s the most secure way to trade Bitcoin.
Bitcoin futures trading also offer flexibility and diverse functionality. Short-term traders are able to capitalize on the consistent volatility in pricing, while cryptocurrency investors may employ any number of hedging strategies. Whether a trader has an opinion on where the market is headed or is simply managing risk, Bitcoin futures can be a viable avenue for achieving your financial goals.
Learn more about Bitcoin futures options here.
Exchanges and Products
Bitcoin futures are launching on the world’s leading derivatives exchanges:
| Exchange | Launch Date |
|---|---|
| CBOE Chicago Futures Exchange (CFE) | December 10, 2017 |
| CME Group | December 18, 2017 |
| NASDAQ | Spring/Summer 2018 |
The offerings of the Cboe and CME Group are standardized futures contracts, subject to federal regulation by the Commodities Futures Trading Commission (CFTC). Each venue offers a unique exchange-based Bitcoin product:
