Bitcoin tops $18,000 in debut on major bourse

AFP, NEW YORK:  Bitcoin surged past $18,000 after making its debut on a major global exchange but was trading lower yesterday, highlighting the volatility of the controversial digital currency that has some investors excited but others nervous.

Trading on a futures contract began at 6:00 pm (2300 GMT) on the Chicago board options exchange (Cboe) at a price of $15,000.

Heavy traffic made the Cboe website inaccessible in the first 20 minutes, but it said that “trading runs on very separate systems and was totally unaffected by the website issues.”

Around 1000 GMT  yesterday, bitcoin was trading at $17,600 per unit for the futures contract expiring on January 17 after reaching a high of $18,850, according to Cboe’s website, meaning it exceeded the highest

value reached on alternative non-regulated internet platforms.

Futures expiring on February 14 and March 14 were higher, trading at $19,140 and $19,100 respectively at the same time yesterday.

A futures contract is a financial product that allows investors to bet on whether the currency’s price will rise or fall.

Bob Fitzsimmons, a futures manager at Wedbush Securities, described the opening as “quiet and steady,” as Cboe data showed around a thousand trades were made in the first two hours.

The Cboe debut is expected to be followed a week later by a rival listing on Chicago Mercantile Exchange.

It marks the first opportunity for professional traders to invest in bitcoin on a traditional platform, even as some steer away because of a lack of regulations surrounding the currency.

“It gives it legitimacy. It recognises that it’s an asset you can trade,” said Nick Colas, of Data Trek research.

Among those cheering the launch are the Winklevoss twins, who have been called the first bitcoin billionaires. Critics include financial commentator Jim Cramer, who warns that prices could tumble once the new trading venues open the door to “short sellers,” who bet on downward moves in assets.

 

Bitcoin tops $18,000 in debut on major bourse

AFP, NEW YORK: Bitcoin surged past $18,000 after making its debut on a major global exchange but was trading lower yesterday, highlighting the volatility of the controversial digital currency that has some investors excited but others nervous. Trading on a futures contract began at 6:00 pm (2300 GMT) on the Chicago board options exchange (Cboe) at a price of $15,000. Heavy traffic made the Cboe website inaccessible in the first 20 minutes, but it said that trading runs on very separate systems and was totally unaffected by the website issues. Around 1000 GMT yesterday, bitcoin was trading at $17,600 per unit for the futures contract expiring on January 17 after reaching a high of $18,850, according to Cboes website, meaning it exceeded the highest value reached on alternative non-regulated internet platforms. Futures expiring on February 14 and March 14 were higher, trading at $19,140 and $19,100 respectively at the same time yesterday. A futures contract is a financial product that allows investors to bet on whether the currencys price will rise or fall. Bob Fitzsimmons, a futures manager at Wedbush Securities, described the opening as quiet and steady, as Cboe data showed around a thousand trades were made in the first two hours. The Cboe debut is expected to be followed a week later by a rival listing on Chicago Mercantile Exchange. It marks the first opportunity for professional traders to invest in bitcoin on a traditional platform, even as some steer away because of a lack of regulations surrounding the currency. It gives it legitimacy. It recognises that its an asset you can trade, said Nick Colas, of Data Trek research. Among those cheering the launch are the Winklevoss twins, who have been called the first bitcoin billionaires. Critics include financial commentator Jim Cramer, who warns that prices could tumble once the new trading venues open the door to short sellers, who bet on downward moves in assets.