Bitcoin Drops Following CME Futures

Bitcoin futures prices decreased this week after CME Group launched the world’s second Bitcoin futures contract on Monday.

In contrast to the market’s 20 % growth after CBOE’s pioneering futures launched on 10th of December, Bitcoin prices are tracking sideways and dropped almost seven percent in the 12 hours.

Each CME contract represents five Bitcoins, whereas a contract on Cboe represents one Bitcoin. The first day’s trading at CME saw slightly higher volumes than day one at CBOE a week prior.

Monday saw CME futures close at $19,100, 2.1 % less than the debut price envisaged by the exchange.

Chief executive of trader DV Chain – Garrett See told :

There was some fear ahead of the CBOE futures launch that Wall Street was going to come in and short Bitcoin, but we haven’t seen that.

As Bitcoin’s latest growth spurt appears to take a break, correcting below $18,000, investors are meanwhile prepared to buy shares in Grayscale’s Bitcoin Investment Trust at double the current market value.

As commentators note on Twitter Tuesday, GBTC is currently trading at an ‘implied’ Bitcoin price approaching $38,000.  So people are buying shares in Bitcoin Investment Trust at an implied Bitcoin price of $37,592