Bitcoin futures started trading on Cboe Global Markets Inc.’s exchange yesterday, marking the first launch of crypto futures on a regulated exchange.
This essentially is allowing investors to “bet” on the future price of bitcoin and within the first 3 hours of trading, heavy traffic caused slowdowns on Cboe’s website.
This, combined with a 26% surge in trading price triggered 2 temporary trading stops designed to “calm the market”. The market doesn't seem to want to be calm though.
The hope was to give traditional investors a lower risk way to get in on the action, but if Monday’s skyrocketing prices are any indication, the only thing more volatile than bitcoin is bitcoin futures.
And the stakes are only getting higher: as it stands, there’s over a quarter-trillion dollars at risk if (when) bitcoin crashes.