They were triggered in the initial hours of their trading as the January contract rose as much as 26 percent. But that's a win because CME's contracts are five times more valuable - they're tied to five bitcoins compared with only one with Cboe's futures.
"We saw a nice open on light volume, but pretty uneventful so far", Spencer Bogart, partner at Blockchain Capital LLC, said shortly after trading began on Sunday. Institutional traders will be more attracted to this type of investing, buying and selling off crypto charts is not for the faint-hearted, though "hodlers" can usually handle it.
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The big daddy of digital currencies traded higher as expected and reached an all-time high once again on December 17th, just before CME opened its doors to traders.
Bitcoin has continued its climb after a new futures contract facilitating short bets failed to hold back its upward trek, Bloomberg reported. Around $50m of contracts changed hands in the first three hours of trading. On its debut on Dec 10, the Cboe traded almost 4,000 contracts during the full session. The price of CBOE's contract is derived from the cryptocurrency's price at a single exchange, and conversely, CME price calculations are based off four exchanges. The margin for an S&P 500 futures contract, by contrast, is 5 per cent, analysts said. However, the CME futures required a 47 percent initial margin or nearly $50,000 on a five-bitcoin future.
"The order book is thin". TD Ameritrade Holding Corp. said late Friday that it will offer Cboe's starting on Monday, though it'll wait to offer the CME contracts until they demonstrate sufficient liquidity.
There are some distinct differences with the two products. Goldman Sachs Group Inc. demanded some clients set aside collateral equal to 100 percent of the value of their trades, people familiar with the investments said last week.