Bitcoin Options are on the way
LedgerX passes final hurdle:
The U.S Commodity Futures Trading Commission announced yesterday that it has granted LedgerX registration as a derivatives clearing organization under the Commodity Exchange Act.
Under this order, LedgerX will be authorized to provide clearing services for fully collateralized digital currency swaps.
The entire release can be read here:
http://www.cftc.gov/PressRoom/PressReleases/pr7592-17
This marks the final hurdle for LedgerX to begin trading options contracts.
They were initially granted an order of registration as a Swap Execution Facility on July 6, 2017.
I wrote about that originally here:
https://steemit.com/cryptocurrency/@jrcornel/wanna-trade-bitcoin-options-we-just-got-one-step-closer
Some specifics:
LedgerX said that they plan to offer options contracts initially in the one to six month time frames. At first they will be primarily based around Bitcoin.
From there, there are plans to expand the virtual currency base to include Ethereum as well as a couple others.
Also, longer dated options are expected to be added as well as the platform matures.
Options will start to be offered in the late September to early October time frame.
What this means?
It likely paves the way for large institutional investors to get involved in Bitcoin and possibly some of the other virtual currencies.
Given the volatility of the cryptocurrency markets, it has been a tough sell to get major financial institutions involved. However, now that options are an "option" it allows them to greatly mitigate some of the volatility via hedging.
It also allows for speculators to take on even more volatility should they so choose.
On the flip side, it will also make it easier to make bets against the virtual currency space. There is always the chance in smaller markets like these that large players make big options bets and then manipulate the markets to move in the direction of their bets.
Buying large amounts of puts and then spreading fud is one option that likely will be tried at some point.
Overall though, I think this is great news for Bitcoin and the entire space. Anytime we can add more would be investors, speculators, and traders the better off we will be.
In my opinion this is going to increase the investor base, possibly pretty substantially.
Stay informed my friends!
Sources:
http://www.cftc.gov/PressRoom/PressReleases/pr7592-17
Image Sources:
http://www.wallpaperup.com/678752/BITCOIN_computer_internet_money_coins_poster_binary_code.html
http://www.zerohedge.com/news/2017-07-08/cftc-approves-options-trading-bitcoin
https://www.bitcoingg.com/bitcoin-gambling/binary-options/
Follow me: @jrcornel
Good news for Bitcoin! Again!
informative stuff
I saw that news yesterday and I must say it's the biggest non fork relating news regarding Bitcoin in months if not years. Thank for bringing this one up on Steem @jrcornel!
It sounds like this would push Bitcoin in the opposite direction the founder of Bitcoin created it for.
http://www.FlippyCoin.com is the #1 Cryptocurrency Exchange!
Derivatives are inventions of the crooked financiers. I'm not sure bitcoin needs this shit.
Options are more likely as insurance sort of for trader.
keep it up
nice picture
f the options are not on a decentralized platform, it will be an very easy target for SEC and Feds to take it down or regulate the hell out of it.
If the options exchange was built on EOS, it would be most ideal as it offers decentralized, anti-ubiquitous surveillance but most of all, very stable and millisecond transaction times. More importantly, no SEC intrusion!
This is awesome. How can people get involved in these kinds of options? Is there a date when they anticipate they will release their first options contracts?
good to know, thanks!
I don't think btc needs the approval of banks, but sure it helps.
That are great News....
Great post! Thanks for information.
Cheers! from @thedamus
Strange... i just upvoted your post @ 50%, which should be about $0.26, but the figure went from$95 to $149 -- that is awesome!!!
Cheers Man! You've got the power!!!
It's because other people upvoted the post at the same time, or in the mean time while your page had not yet refreshed. When you hit the upvote button, the page refreshed and you were able to see the new amount, but it looked like you were the one who contributed the difference.
O i c... thx for info -- i thought there was some kind of Supersteem thing going on.
Now following u2 ;)
me2
It may bring more investors, but also more games... manipulation is sure to follow.
Yep, I agree with this 100%. There are certainly going to be downsides. One is that people can now buy bitcoin options (long dated calls) instead of the underlying asset, which may or may not actually push the price up. Overall I think the increased exposure will be a net positive, but it certainly isn't all rainbows and puppy dogs regarding this news.
Hopefully it does not occur in other than Bitcoin. If it goes to ETH, the shift to EOS will be massive.
Hey @jrcornel we just starting following you and upvote your Post. We like the fact that you are using the news of today that pertains to the Cryptocurrency Realm with the fellow Steemians here.
What do you guys think about this decision that the CFTC had made recently?
Good or Bad?
Ultimately I think it will be good as it will open the doors to a wider investor base. People are a lot more likely to invest in Bitcoin if they can hedge their bets to the downside. Thanks for the follow! I am following you as well :)
IMO, short term is good, long term is not so good/vague. Using margin trading by institutions and banks combined with "current volatility" in cryptocurrencies can be very dangerous.
Also it's a great way of manipulating Bitcoin price- the same way they're manipulating & suppressing gold/silver prices.
Good news, good news. Because there is still more volatility in bitcoin than most institutional investors are used to, this looks like a nice on ramp for their interest and speculation.
My thoughts as well.