Mark Fisher, a renowned trader and CEO of MBF clearing Corp., made the comparison of bitcoin being much like the commodity silver during the 1970’s and 1980’s to CBNC on December 5.
“Bitcoin was what silver was back in the late ’70s and ’80s, for sure.” Additionally, he said, “The reason people are so attracted to bitcoin is because people want something that’s actually moved dramatically.”
Bitcoin, the most prominent cryptocurrency, has seen dramatic changes on the market with continuous appreciation in the value, reaching its highest value of $16,615,62 on December 7 from just $10,000 during December 1. Such volatility is the factor that attracts many to bitcoin, Fisher said:
“The reason people are so attracted to bitcoin is because people want something that’s actually moved dramatically, that there’s no Wall Street to it. The thing that every cab driver is talking about all day long.”
CBOE global markets announced on December 5 that they will be the first to launch bitcoin futures going live on December 10 at 6 p.m. (ET), speeding ahead of CME. The CME, another exchange, announced that they would deliver bitcoin derivatives products, launching the futures contracts on December 18. Fisher expects the first launch is going to be wild, “it is going to be the Wild West.”
He adds, “It’s going to be great volatility. And for someone like me, who cares what it is, as long as it moves, right?”
Additionally, Ed Tilly, chairman and CEO of CBOE Global markets, said, “Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure.”
The difference between the way the two major exchanges are launching their bitcoin innovations is, firstly CBOE’s bitcoin futures will be a cash settled alongside an auction price from Gemini trust, trading under the ticker symbol “XBT.” Whereas, CME plans for bitcoin futures agreement to be cash settled against an index comprised of the following four exchanges; Bitstamp, GDAX, itBit, and Kraken.
This is a very exciting time as the major exchanges have made significant progress toward enabling further adoption of bitcoin and creating a platform that is advancing the legitimization of the digital currency.