Not exact matches
Like the U.S. - based GBTC, the XBT
bitcoin ETNs typically
trade at a premium or discount to the
actual price
of bitcoin, but the range has been much smaller than in the case
of GBTC, between 1 percent and 3 percent.
Bobby Cho, head trader at major
bitcoin trading company Cumberland, a subsidiary
of DRW, pointed out that the CME futures were
trading closer to the
actual price
of bitcoin than the Cboe contract had at launch last Sunday.
The financial giants will start
trading bitcoin futures for clients instead
of buying and selling
actual cryptocurrency, but that may come in future.
While both ether and
bitcoin are cryptocurrencies and can be
traded, exchanged, and transacted between users, ether is largely used to pay for services and transaction fees on the network — enabling the development and distribution
of applications — while
bitcoin is used more closely to an
actual currency and alternative therein.
Important note: The majority
of exchanges and also the prevailing interest in
Bitcoin, Ethereum and Litecoin means that you may not
trade any other like these for
actual cash.
He has already spoken about taking the next step,
of trading actual Bitcoin once regulation and security matters have settled.
Notably, unlike some
of its competitors, Coinfloor will offer physically settled futures contracts, the wire service reported, meaning when the contract is set to expire, the
actual asset being
traded will be delivered (in this case,
bitcoin).
But till the end
of 2017 they have only been tradable on
actual Bitcoin brokers such as BitMEX (or OKcoin, which is one
of the biggest Chinese
Bitcoin trading platforms).
Another important aspect
of Bitcoin Futures
Trading is that there is no
actual contract between buyer and seller directly.
Popular
Bitcoin and altcoin exchange Poloniex has submitted a request for no action relief to the Commodities and Futures
Trading Commission (CFTC) around potential allegations that required timing
of the «
actual delivery»
of cryptocurrency, regulated by a 28 day period in the Commodity Exchange Act (CEA), has been violated.
China - based
bitcoin exchanges have been accused by users
of manipulating
trading volumes before, with some claiming to shift over 30,000 BTC in December amidst
bitcoin's price plunge, and users claimed the
actual number might be a tenth
of that.
Regardless
of the massive inflow
of volume institutional firms can bring through derivatives,
trading firms will need to
trade actual bitcoin for delivery.
Prior to China instituting a fixed flat rate charge
of 0.2 % on all
bitcoin trades, cryptocurrency enthusiasts had tried to estimate a «true volume» - a more realistic
trading volume for Chinese exchanges that may indicate the region's
actual dominance in the market.
This simply means that on the date
of expiry, no
actual bitcoin will be
traded but a cash value will be credited to one
of the parties depending on the final settlement price.
Whilst
trading volumes in
bitcoin futures at CBOE and CME remain fairly low, as both platforms still see it as an experiment, central bank officials warn
of high risks
of losing
actual money by
trading bitcoin due to the unpredictability
of the digital currencies, and lack
of clarity regarding mechanisms driving the market.
It may look complicated at first, but the
actual process
of purchasing
bitcoin can be very simple, with users having the option to conduct market
trades that allow them to buy
bitcoin at the current market value.
Robinhood is also allowing users to track the price
of a number
of other cryptocurrencies including Ripple and Litecoin, although the
actual trading feature will only be available for
Bitcoin and Ethereum.