Two New Bitcoin ETFs Are Up For SEC Approval
The implications of CME Group’s cash settled futures market for Bitcoin has caused confusion among traders. Dealers said volume was high for a new contract, even though it was tiny relative to more established futures. The trading halts took effect just as Cboe had outlined in its rules. Transactions stopped for two minutes after a 10% gain from the opening price, and for five minutes after a 20% jump. Another five-minute halt will take effect if the rally extends to 30%, Cboe said in a notice on its website.
The company is initially offering a Bitcoin wallet and two markets for their customer to trade. The first is a Foreign Exchange market that allows Bitcoin to be traded for various fiat currencies, called the virtual currency FX” market. Traders also have access to margin trading , an already-very popular market type for , according to the announcement.
Derivatives expand the market and increase liquidity by letting investors bet on gains or declines, and allowing trading firms to adopt market-neutral strategies, finishing each day even. They also are key to the creation of investment products like ETFs for a broader range of institutional investors, which generally are restricted to buying regulated securities.
Regulators have shot down various attempts to introduce ETFs that track the price of Bitcoin in the U.S. out of concern that Bitcoin prices on unregulated digital currency exchanges could be manipulated, said Harvey. But that concern doesn’t exist for Bitcoin futures trading on a major exchange that’s fully regulated.
Looking at the 5 minute chart, the low on June 1st was where the price was testing the 200 hour MA. Although the price was still below the 100 and 200 bar MA on 5-minute chart, the risk was the 200 hour MA on the hourly chart. The MAs on the 5-minute were targets to get to and through to confirm the low was in place.