But the regulators are closing in on cryptocurrencies
A week after CBOE launched trading of bitcoin futures the CME exchange has followed suit.
Trading got underway to a “lukewarm response” reports Reuters with an opening $20,650 beating the exchange’s reference price by more than $1000. But within 30 minutes the price had dropped 6% and overnight the price has slipped to around $18,800.
Despite the volatile early trading, CME saw $50 million of bitcoin futures traded within the first three hours Sunday night, beating rival CBOE’s debut of $30 million in that time frame a week earlier.
CME’s size makes the launch of the futures contracts an important step and Shane Chanel, an advisor at Australian investment firm ASR Wealth Advisors told CNN that it “adds considerable legitimacy” to bitcoin.
Regulators want a piece of the action
With so much money flying around the cryptocurrency space, regulators are ramping up their assessment of the asset class and many want to take action.
Their response could be coordinated if the French finance minister gets his way.
Brune Le Maire said Monday that he wants the G20 meeting of finance ministers in April to consider regulation.
“There is evidently a risk of speculation. We need to consider and examine this and see how with all the other G20 members we can regulate bitcoin,” he told French news channel LCI.
This view was echoed by Axel Weber, the chairman of Swiss-based bank UBS who told the NZZ newspaper that his bank does not assess bitcoin as valuable or sustainable and warns against it.
Weber said that regulators are required due to the participation in the market of small investors and said he would welcome a discussion with regulators.
Investors remain divided
Although some investors will be cautiously entering the market, many are clearly on one side or the other.
Those that are cautious include Spencer Bogart of Blockchain Capital LLC who told Reuters: “This is a brand-new asset class and I think perhaps a lot of investors want to sit back and see how this plays out before dipping their toes in this market.”
Meanwhile, Miami-based analyst Ronnie Moas of Standpoint Research is convinced that the sharp rise in bitcoin value this year is only the beginning.
"Bitcoin is already up 500% since I recommended it in the beginning of July, and I'm looking for another 500% move from here," Moas told CNBC.
He went on to say that he believes bitcoin will be come the world’s most valuable currency with an ‘end game’ price of between $300K and $400K.
Trading got underway to a “lukewarm response” reports Reuters with an opening $20,650 beating the exchange’s reference price by more than $1000. But within 30 minutes the price had dropped 6% and overnight the price has slipped to around $18,800.
Despite the volatile early trading, CME saw $50 million of bitcoin futures traded within the first three hours Sunday night, beating rival CBOE’s debut of $30 million in that time frame a week earlier.
CME’s size makes the launch of the futures contracts an important step and Shane Chanel, an advisor at Australian investment firm ASR Wealth Advisors told CNN that it “adds considerable legitimacy” to bitcoin.
Regulators want a piece of the action
With so much money flying around the cryptocurrency space, regulators are ramping up their assessment of the asset class and many want to take action.
Their response could be coordinated if the French finance minister gets his way.
Brune Le Maire said Monday that he wants the G20 meeting of finance ministers in April to consider regulation.
“There is evidently a risk of speculation. We need to consider and examine this and see how with all the other G20 members we can regulate bitcoin,” he told French news channel LCI.
This view was echoed by Axel Weber, the chairman of Swiss-based bank UBS who told the NZZ newspaper that his bank does not assess bitcoin as valuable or sustainable and warns against it.
Weber said that regulators are required due to the participation in the market of small investors and said he would welcome a discussion with regulators.
Investors remain divided
Although some investors will be cautiously entering the market, many are clearly on one side or the other.
Those that are cautious include Spencer Bogart of Blockchain Capital LLC who told Reuters: “This is a brand-new asset class and I think perhaps a lot of investors want to sit back and see how this plays out before dipping their toes in this market.”
Meanwhile, Miami-based analyst Ronnie Moas of Standpoint Research is convinced that the sharp rise in bitcoin value this year is only the beginning.
"Bitcoin is already up 500% since I recommended it in the beginning of July, and I'm looking for another 500% move from here," Moas told CNBC.
He went on to say that he believes bitcoin will be come the world’s most valuable currency with an ‘end game’ price of between $300K and $400K.
