The Bitcoin futures market opened with a muted reception yesterday at 11.00pm (GMT) Sunday night and there was little and pretty low trading volumes.
Ed Tilly CBOE CEO suggested that the opening session had been successful:
“Our regulated market experienced a smooth operational open and orderly markets throughout the evening trading session. We look forward to the growth of this new derivatives market.”
Trading was interrupted a couple of times, but these interruptions had been predicted well ahead of time and the CBOE website struggled initially when the doors opened at 11.oo pm on Sunday.
It didn’t take too long though for the website to be back up and running.
Volumes weren’t that big but overall this was likely to be considered a successful first session.
JB Mackenzie of TD Ameritrade said:
“The first trade session was very orderly with good liquidity and volume. More than 2,000 contracts traded before midnight which shows that the marketplace was engaged.”
When you consider that in the more established futures markets, such as gold, where typically there are 400,000 trades at around $125000, then you’ll appreciate that the initial 3000 trades on the Bitcoin Futures Market, totalling just $50m, really do represent chump change in the scheme of things.
Bobby Cho, the head trader at Bitcoin Trading Company, Cumberland stated that:
“Trading was orderly, though there is not a lot of liquidity. There is very limited action because a lot of the brokers aren’t giving access to their clients yet.”
The Bitcoin market is tiny when compared with the other major asset classes.
Bitcoin versus Other Asset Classes
- Bitcoin: $300 billion
- Gold: $6 trillion
- U.S. stock market: $25 trillion
- U.S. bond market: $38 trillion
Cameron Winklevoss, an investor in the Gemini exchange behind the CBOE Bitcoin futures contract suggested that:
“Long term, directionally, the Bitcoin Futures Market is a multitrillion-dollar asset — I just don’t know how long it takes to get there.”
The first-ever futures contract for the digital currency Bitcoin closed Monday at $18,545, ending its first day of trading with a 20% gain.