CBOE Won’t Issue New Bitcoin (BTC, XBT) Futures; Reassessing Approach to Digital Asset Derivatives
The CBOE futures will not see new contracts reissued, with the current futures expiring in June.
CBOE has issued a note to traders that no new March futures for Bitcoin (BTC, XBT) will be re-issued. This leaves the market to settle the last remaining futures, expiring in June. The three-month cash-settled futures of CBOE were seen as one of the most promising digital asset-based investment products.
The exchange operator has decided to review its policy on digital assets:
“CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading. Currently listed XBT futures contracts remain available for trading.”
CBOE futures have not created additional demand for Bitcoin, as they are cash-settled and do not involve any form of transfer or delivery of coins. The other available product, CME futures, are still active. There are also expectations that the Bakkt-proposed futures may be approved after the latest review period, creating the first physical-delivery Bitcoin product for traditional investors.
The effect of a market suspension is seen by traders as hypothetically leading to a price shift on the BTC markets. CBOE futures were launched near peak prices, while hopes for BTC were still high.
Since then, BTC went through a bear market, sliding more than 80% down from its peak.
The suspension of futures arrives after another period of price stagnation for BTC on cryptocurrency exchanges. BTC moved between $3,800 and briefly to $4,200. The past quarter also saw several instances of unexplained price spikes on weekends, followed by a crash. The price setting mechanism of BTC is independent of mainstream finance, and still reflects activity on unregulated exchanges.
BTC prices are seen as shaky, possibly at a crossroads, once again potentially either taking off for a rally, or crashing to a lower range. The uncertainty and the predominance of coin-to-coin trading is diminishing mainstream interest in the price movements of digital assets.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.