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The launch of the Chicago Board Options Exchange (CBOE)’s got off to a volatile start due to heavy traffic. The start of the trading on Sunday led to a surge in the price of bitcoin.
The CBOE is a financial product which allows investors to bet on the rise and fall of the price is tied to bitcoin.
According to Coin Desk’s bitcoin price index (BPI), the markets exchange opened at $14,509 which then leapt to $15,732. The price of bitcoin has however maintained a steady trend from the initial jump trading at $15,226.29.
Lately, the astonishing performance of the Bitcoin Futures has led to many investors purchasing contracts. The bids of the contracts began at $15,000 which is set to expire on January 17, 2018. As of 7.10pm EST, 672 contracts had been sold as reported by CNBC.
CBOE’s trading is a first in a major exchange in the US. CME Group is set to follow this trend next week as it had earlier announced that it will launch its own on 18th Dec.
After the momentous launch, CBOE hopes that this may lead to other products and services centered on cryptocurrencies.
Bull trap or bullish?
“So far, looking at the volume traded, we believe that there is a decent demand which is driving up the price of bitcoin. Prices are going higher due to increase in confidence.” said Naem Aslam, chief market analyst at TF Global Markets in London.
Due to market speculation and optimism, bitcoin’s price is set to surpass the $20k in the short term.