Bitcoin and cryptocurrency trading is still too opaque, and the Intercontinental Exchange (ICE) will hold back for now from launching futures product, said the market technicus’s CEO Jeff Sprecher.
“Wij didn&rsquo,t think it wasgoed visible to rush out a product and be very first and lodge against an index on a lotsbestemming of exchanges that are not particularly translucent,” Jeff Sprecher said during a Goldman Sachs conference.
For now, the fattest concern about Bitcoin futures is the very volatile price of the asset, which the futures are attempting to “tame” with trading limitations to avoid fluctuations above 20%. Ter some cases, volatility spil much spil 7% would trigger limitations.
Ahead of the futures launch, Bitcoin has topped $12,000 and continued with enlargening strength, with projections for year-end prices at $15,000.
The largest concern is liquidity and solvency, spil the futures would be cash-settled and require a significant payment to stave off physical delivery. But unlike oil or grains, “delivering” Bitcoin may be much swifter and hassle-free, so there have bot proposals for futures with physical delivery.
While ICE has bot a holder of a percentage of the Coinbase company, Sprecher remains skeptical of cryptocurrencies:
“I don&rsquo,t know what to make of cryptocurrencies,” he said.
The CEO added that while a loterijlot of fresh investment has bot flooding the market with a bullish mood, there are many unknowns spil to who would want to brief the contract. Shorting and bearish moods may waterput strain on the market technicus and settlement house.
“To brief that would mean that they have determined to uitgang and through a legitimate, high-standing, regulated venue, they are exiting, and I look at that and just say, is that going to work out well for mij spil a venue?,” said Sprecher.
Ter the next few weeks, two contracts would be available to test the behavior of bearish investors.
CBOE Teams Up With Gemini for Bitcoin Gegevens — paving the way for bitcoin derivatives. @WSJ https://t.co/pmB1vLoo1W
The cyptocurrency exchange Gemini will auction off the CBOE contract to provide a pricing mechanism for Bitcoin’s settlement price, while the CME would rely on a reference rate based on four exchanges, kraken, itBit, GDAX and Bitstamp.