About institutional investors, futures and liquidity.
Many of us have heard from the autumn of last year about the arrival of big money on the crypto market. Even i say more, in part they have already come ...
Those. Currently, as well as from the end of last year, investors interested in investing in bitcoin have this opportunity through the Bitcoin Investment Trust (OTC: GBTC) from Grayscale, but it is over-the-counter. Real legitimacy and investor confidence is possible only in the case of trading on a large US stock exchange, so the launch last December of trading bitcoin futures on two Chicago stock exchanges CBOE XBT and CME BTC was on the one hand a positive moment for institutional investors, but on the other hand, as and expected, affected the rules of the game of the entire crypto-currency sector.
Remember the first months of this year - many were expected to attract additional liquidity. At the moment, judging by the reports of the exchanges, it is clear that although there is an increase in the volume of trading in bitcoin futures, but interested investors continue to wait ...
From the news of recent months, it is worth mentioning that the CBOE exchange, after bitcoin futures, continues to "actively encourage" the SEC to resolve crypto-currency ETFs (exchange products) and consider them in a comprehensive manner. On the liquidity issue, there is also information about the negotiations between Goldman Sachs (NYSE: GS) and JPMorgan (NYSE: JPM) on joint consolidation in the active trading bitcoin. And for the sake of completeness, find and read about such big players in the industry as Coinbase, BitGo, Ledger, who actively acquire financial instruments for institutional clients' money and confirm their rights to them.
Without going into details you can ask:
⚡️ Are these futures influencing the market? How does this affect volatility, liquidity or something else ?!
Oh sure! And first of all they affect volumes, which in turn helps to reduce spreads and increase the volatility of the instrument. The big players mentioned above are gradually added to the market, but now only through futures, because they are legally understandable to them, and the crypto-exchange exchanges are not.
Also I would like to add that due to the initially set trading conditions for bitcoins futures small speculators could afford only long, but shorts were available only to professional players with large money (for example, at CME from $ 200,000). Did this influence the course of bitcoin in particular and the market as a whole - beyond any doubt.
And here is the latest news of this week - the Nasdaq exchange may start offering bitcoin futures as early as June 2018.
It turns out that at a time when the CME Group is focused on a much larger futures market, Nasdaq, having a wider recognition among retail investors, will make this product a mass ...
As you understand, Nasdaq is a very serious organization, with a tough board of directors, and by doing ETF these guys really see money. Now bitcoin, and then in their plans is ether.
I think this will add more volume, liquidity will increase, spreads will decrease and as a result the instruments will behave quite differently - that's where the positive dynamics in the market can actually begin ...
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