Good morning. It’s a red letter day for bitcoin as the cryptocurrency makes its long-anticipated debut on the world’s futures market.
For the first time, institutional investors can bet on whether bitcoin will continue to rise in value, or crash back to earth. This could be a watershed moment for digital currencies, moving them closer to the mainstream.
There’s already a surge of interest in bitcoin this morning, since the Chicago Board Options Exchange (CBOE) launched its futures contract.
Bitcoin’s price has surged by up to 25%, forcing CBOE to temporarily halt trading - twice! - to let the volatility cool off.
Dealers reported that there is more interest than expected, with a torrent of traffic hitting CBOE’s website.
Once the situation calmed down, Bitcoin futures expiring in January are changing hands at $17,780 - up from an opening level of $15,000.
That surge in value has pushed bitcoin futures way ahead of the ‘spot’ price of bitcoin -- ie, how much you’d have to pay for one right now.
In other words, investors are anticipating that bitcoin will keep pushing higher.
