Why is Bitcoin futures trading important?
Signing a bit coin futures contract has two important implications.
First, it is easier for institutional investors to take a position as a bit coin. They eliminate complicated math problems and do not actually need to buy or sell digital currencies.
Instead, based on CME's bit exchange price index, trading positions expire and gain or lose.
Second, people can bet on the beat coin. Until now, there has been no way for digital currencies to be expensive. Through derivative contracts, traders can bet that in mid-January (or whenever a particular futures contract expires) the bit coin price will be lower than the current price.
This means that digital currencies are finding 'true' value while eliminating recent volatility.
Anyway it is a theory.
Interactive investor Lee Wild explains:
The introduction of US futures contracts was intended to provide market access and improve liquidity for short-term traders, but availability is still limited. Introducing bitcoin gifts to the Chicago Mercantile Exchange on weekends may be helpful, but it will take time.
Bitcoin will continue to pass milestones with surprisingly regularity, until it is easy to short sell, dry, or have technical problems or major hacks. Right now there are big companies waiting for both amateur and professional. This bubble does not burst yet. "