USA: Future trading opening in Chicago causes warnings of Bitcoin bubble to increase
Bitcoin has made developments towards legitimacy by launching a new product on a Chicago exchange which allows investors to place bets on its price in the future.
The new contract on the Chicago Board Options Exchange came as the cryptocurrency jumped another 10% which sparked fresh warnings of a speculative bubble after a recent 40% rise in price.
The new futures contract in Chicago highlighted that traders were expecting the cryptocurrency to be trading at even higher prices in January while the digital currency was trading at USD $16,200.
The futures contract trading on the CBOE allows traders to place bets, or to protect themselves, on the bitcoin price next month. In London, it started trading just before midnight on Sunday the 10th December at USD $15,460 and hit a high of USD $18,700 and then dropped back to USD $17,800.
In addition, the Chicago Mercantile Exchange (CME) has now become the second exchange to offer bitcoin derivatives trading on Sunday the 17th December. As of right now, bitcoin futures contracts that settle in 2018 have all fallen below their opening value.