When Cboe and CME launched their Bitcoin Futures products last year, many saw this as an interesting opportunity for digital currencies. After almost a decade on the brink of the financial system, mainstream investors finally welcomed Bitcoin.
Some thought that futures contracts would lead to wider acceptance by large banks and others saw it as an opportunity to involve traditional investors in crypto markets.
On its first day of trading, Cboe’s website almost crashed when investors discovered this new investment opportunity. Since then, little attention has been paid to the Bitcoin futures markets by investors or experts. The collective attention of the crypto community turned to the fast-moving markets and the threat of regulatory fears.
Record-breaking daily volumes
The numbers are impressive. According to Kevin Davitt, senior instructor at the Cboe Options Institute:”…18,210 contracts and….a total of 19,000 bitcoin futures…[on Wednesday].”
Investors thus traded an additional 4,000 contracts than usual. According to the official Twitter account of Cboe, Bitcoin futures are traded at three times their average daily turnover.
Bitcoin Futures as an indicator
Bitcoin futures are trading almost 500 points higher than last week. In the past, contracts became more and more popular. The sudden popularity of Bitcoin futures reflects a burgeoning upward movement of figures like Tom Lee, Tim Draper and others across the broad crypto spectrum. Unlike crypto exchanges, which are always open, the Cboe and CME exchanges are only open on working days at fixed times.