The future holds good fortune for Bitcoin, despite the Futures expiry.
As the collective cryptocurrency world is on the verge of yet another CME Futures contract expiry, volatility fears have set in. At the close of every quarter, an expiry of a set of XBT contracts offered by the Chicago-based exchange is seen to give rise to bearish ripples to the spot market, causing a drop in Bitcoin’s price. The current set of contracts which were rolled out on June 3, are due to expire on August 30. And as past price movements go, the price has traditionally acted sensitively to the contract expiry.
Often seen as the institutional investor’s crypto-hotbed, the regulated futures market is beginning to lose its sheen. The entire institutional [regulated] crypto-market shifted to the CME, as the second-horse, the CBOE, dropped out of the Bitcoin Futures market in March, right before Bitcoin began its massive bullish swing. However in that time, not only did Bitcoin reach the five figure mark, but several positive signs were seen, with investing heavyweights leaning towards the cryptocurrency realm.
With the imminent entry of Intercontinental Exchange’s Bakkt platform offering Bitcoin Futures next month, and the final hearing of the Bitcoin ETF applications scheduled for October, institutional markets are more than the CME, at this point. Individual financial companies like Fidelity and TD Ameritrade are looking to launch their own curated versions of Bitcoin trading applications, while big banks like JP Morgan and [possibly] Goldman Sachs are queuing up to roll-out an internal settlement coin within their coffers.
Regardless of the positive signs that will punctuate the close of this year, it will have consequences for years to follow. The CME Futures expiry are periodically an important event in the Bitcoin market.
Experts have weighted in to address the issue.