UK crypto exchange Coinfloor to launch Bitcoin futures in April

One of the top European exchanges based in the United Kingdom is planning to offer Bitcoin-based futures contracts starting next month.

Announcing the development in a tweet, UK-based cryptocurrency exchange Coinfloor said that it will be launching the world’s first “physically delivered” Bitcoin futures contract from April 18. It is not known how this is going to affect the price of the cryptocurrency, since the last time futures were launched in December, the price of legacy Bitcoin (BTC) went down considerably from highs of $20,000 and has never recovered since.

The news was also revealed during the Futures Industry Association’s annual conference that took place in Florida. Coinfloor co-founder Mark Lamb revealed that the UK-based exchange would be delivering a dedicated futures exchange which it decided to call CoinfloorEX that would eventually showcase this trail blazing product.

However, there is a great deal of scepticism in the industry at the moment since the price of BTC appears to continue sliding and it would be rather difficult to predict what the April price for the cryptocurrency would be. In fact, investors who were hoping for a resurgence in March have been bitterly disappointed since the falls in prices across practically all cryptocurrencies is actually in excess that of January. Additionally, the bear market which was supposedly to start recovering in the past days showed no signs of abating.

Unlike the contracts offered by U.S.-based platforms CBOE and CME Group, “physically delivered” BTC futures will deliver the underlying asset on the futures’ specified delivery date. In the current model, BTC futures investors receive their dividends in fiat currency.

This way, security concerns about cash-settled contracts are diminished, according to Lamb. In an interview with Reuters, the Coinfloor co-founder said liquidity providers “want a physically delivered futures contract so they can hedge their exposure across exchanges.”

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Cryptocurrency market endures another correction

The whole cryptocurrency market endured another heavy correction on Thursday with legacy Bitcoin’s (BTC) price dipping to well below the $10,000 mark. Although there was no indicator to this heavy drop, it seems that the expiry of BTC futures at the end of the week might have triggered a sell off thus pushing the price down. This decline also affected the other major cryptocurrencies, which saw heavy drops although in some cases they were not so marked.

Bitcoin Cash suffered a considerable 8% drop after having climbed consistently in recent days and was back at the $1,100-1,200 mark, fluctuating consistently between those two figures. At press time however, the cryptocurrency—which offers far lower fees than BTC—was trading at almost $1,200 with signs of another bull run on the cards.

Ethereum had another disappointing day when it fell perilously close to the psychologically sensitive $800 level, but eventually it recovered to the $840 mark and seems to be climbing at press time as a small recovery gathers pace. Ripple also saw a steep descent in the past 24 hours when the price dropped to well below the $0.90 mark but was recovering at press time to reach the $0.92 mark. This currency has been by far the worst performer of late with steep declines and very little rises when compared to other cryptocurrencies which have made considerable gains.

Litecoin was another disappointment since it sank to well below the $200 mark having reached an impressive $240 figure earlier in the week. That recovery seemed to have been based on the launch of LitePay on Feb 26, but the currency was dragged down by negative sentiment. After a huge bull run which saw its price rocket to around $41, Ethereum Classic also suffered a considerable pullback to around $32—an almost 25% decline from its high reached only a few days ago. It had recovered to around $35 at press time and was seemingly on another bullish run in anticipation of the fork which is expected to take place on March 1.

Other smaller cryptocurrencies by market cap also suffered heavy losses, with Stellar Lumens being the main sufferer dropping by almost 12% at one point. Dash also suffered a reduction in its value which saw the price drop below $600 but it recovered to around $620. Neo also saw a decline in value of around 7%, but it recovered to around $115 after having dropped as low as $111 at one point.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Hong Kong investors turn to regulated US exchanges for BTC futures

Investors in Hong Kong are increasingly turning to U.S.-based exchanges for trade in SegWit1x (BTC) futures, in order to escape the perceived risks of trading through unregulated local exchanges.

BTC futures, which were launched on two distinct U.S. exchanges back in December, have experienced a growth in trading volumes in recent weeks, with both Cboe and CME exchanges reporting a growth in investors from Hong Kong.

Average daily turnover of futures at Cboe clocked in at just shy of 10,300 contracts per day, while CME reported a 1,978 per day average over the same period. While the figures didn’t break down investors by location, the anecdotal evidence was clear.

Gary Cheung, chairman of the Hong Kong Stockbrokers Association, said the increase in interest from Hong Kong investors was driven by recent volatility in the underlying cryptocurrency markets.

“There are two types of Hong Kong investors who like to trade U.S. futures. There are bitcoin [BTC] miners and other investors who trade bitcoin [BTC] and want to use the futures products to hedge. The others are normal futures investors who purely want to take profit created by speculative futures trading,” he told the South China Morning Post.

Similarly, Gary Leung, of international brokerage firm TD Ameritrade, reported a significant groundswell of interest in U.S. trading from Hong Kong-based cryptocurrency enthusiasts.

“We have received a lot of inquiries about [Segwit] futures since we started operating in Hong Kong last October, when the prices were surging,” Leung said.

Hong Kong treats cryptocurrencies as commodities, rather than securities—a crucial distinction that means they don’t fall within the remit of the Securities and Futures Commission, Hong Kong’s chief financial regulator.

According to Benny Mau, managing director of China Securities International Finance Holdings, it is this lack of firm regulation that is driving Hong Kong investors to look for opportunities on the U.S. exchanges.

“[BTC] and other digital currencies are basically not regulated in Hong Kong because they are traded like commodities. If the digital currency platforms have a problem or are hacked, the investors may suffer losses because the regulators might not do anything for them,” Mau said.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

SegWit Bitcoin could be worthless, says Morgan Stanley

The last few weeks have seen spectacular ups for SegWit1x (BTC), capped with a notable down, as prices finally corrected with the launch of BTC futures. But according to one analyst at Morgan Stanley, the true value of the world’s biggest cryptocurrency could be much closer to zero.

In a research note published last week, called ‘Bitcoin Decrypted’, analyst James Faucette said that despite the strong price performance in 2017, BTC could actually be worth zero, with no inherent value beyond speculation.

The research note takes a more notably pessimistic view on the digital currency than most, highlighting the lack of an interest rate, and the lack of any intrinsic value as an asset as being the underlying reasons for the negative assessment.

However, Faucette suggested that BTC still held some value as a payment network, despite the acceptance and transaction numbers stalling or even falling by some measures. In the note, he concludes this points to BTC being essentially worthless.

The news will cause concern to those investors still holding BTC, and could suggest a further decline in price in the weeks ahead. At the time of writing, BTC was trading at $15,840, down 1.3% over the last week, following highs of nearly $20,000.

The paper gave no price target for BTC, and suggested that while Bitcoin could be considered an asset like digital gold, it cannot be recognized as a currency in its current form.

Faucette pointed out the fractional trade volume levels as compared to other markets, and the general lack of acceptance of BTC as a payment method. Transaction fees and processing times were highlighted as further stumbling blocks, surmising that “…if nobody accepts the technology for payment then the value would be 0.”

The research note, which is published for the benefit of Morgan Stanley investment clients, takes a markedly more downbeat tone than most, but is only the latest criticism of the asset class from Morgan Stanley analysts.

Previous research notes have identified price corrections, and urged caution for investors considering buying BTC.

After a tumultuous two weeks’ trading, it remains to be seen whether the Morgan Stanley research note offers an accurate forecast.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

SegWit Bitcoin could be worthless, says Morgan Stanley

The last few weeks have seen spectacular ups for SegWit1x (BTC), capped with a notable down, as prices finally corrected with the launch of BTC futures. But according to one analyst at Morgan Stanley, the true value of the world’s biggest cryptocurrency could be much closer to zero.

In a research note published last week, called ‘Bitcoin Decrypted’, analyst James Faucette said that despite the strong price performance in 2017, BTC could actually be worth zero, with no inherent value beyond speculation.

The research note takes a more notably pessimistic view on the digital currency than most, highlighting the lack of an interest rate, and the lack of any intrinsic value as an asset as being the underlying reasons for the negative assessment.

However, Faucette suggested that BTC still held some value as a payment network, despite the acceptance and transaction numbers stalling or even falling by some measures. In the note, he concludes this points to BTC being essentially worthless.

The news will cause concern to those investors still holding BTC, and could suggest a further decline in price in the weeks ahead. At the time of writing, BTC was trading at $15,840, down 1.3% over the last week, following highs of nearly $20,000.

The paper gave no price target for BTC, and suggested that while Bitcoin could be considered an asset like digital gold, it cannot be recognized as a currency in its current form.

Faucette pointed out the fractional trade volume levels as compared to other markets, and the general lack of acceptance of BTC as a payment method. Transaction fees and processing times were highlighted as further stumbling blocks, surmising that “…if nobody accepts the technology for payment then the value would be 0.”

The research note, which is published for the benefit of Morgan Stanley investment clients, takes a markedly more downbeat tone than most, but is only the latest criticism of the asset class from Morgan Stanley analysts.

Previous research notes have identified price corrections, and urged caution for investors considering buying BTC.

After a tumultuous two weeks’ trading, it remains to be seen whether the Morgan Stanley research note offers an accurate forecast.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Hong Kong financial regulator issues fresh warning over SegWit1x futures

The financial regulator of Hong Kong issued on Tuesday fresh warnings over SegWit1x futures, citing concerns over unregulated providers.

The warnings come as part of a circular published this week by the Hong Kong Securities and Futures Commission, in response to the landmark launch of SegWit1x futures markets.

The SFC, which is tasked with regulating Hong Kong securities, declared SegWit1x futures to be a ‘type 2’ regulated activity under the relevant financial regulations, warning that only those firms licensed to offer futures trading in Hong Kong should be considered by investors.

Citing concerns over the risks of dealing with unregulated operators, the SFC recommended investors to deal only with licensed intermediaries.

The circular was published after the first futures products for SegWit1x went on sale on U.S. exchange CBOE over the weekend. CME Group is expected to become the second exchange to offer futures, with their launch plans set for next week, prompting further guidance from regulators as investors begin to explore these new opportunities.

According to the circular, investors in Hong Kong should work with Hong Kong regulated operators who hold the relevant SFC licenses and are members of the relevant U.S. exchanges.

“Bitcoin futures have been or will soon be launched by certain well-established futures and commodities exchanges in the United States which are regulated by the U.S. Commodity Futures Trading Commission and authorized by the Securities and Futures Commission (“SFC”) to provide automated trading services,” the regulator stated.

“Hong Kong investors may be able to trade in bitcoin futures through an intermediary which is a member of these exchanges….The industry is reminded that a party is required to have an appropriate license with the SFC if it provides any other business services relating to Bitcoin futures,” according to the circular.

The SFC was also keen to point out the availability of other cryptocurrency products, including options, applying similar warnings for investors, while reminding operators that failure to hold the relevant license amounts to a criminal offence.

The comments were wrapped in a general reminder about the risks of cryptocurrency in general, including volatility and limited liquidity.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Hong Kong financial regulator issues fresh warning over SegWit1x futures

The financial regulator of Hong Kong issued on Tuesday fresh warnings over SegWit1x futures, citing concerns over unregulated providers.

The warnings come as part of a circular published this week by the Hong Kong Securities and Futures Commission, in response to the landmark launch of SegWit1x futures markets.

The SFC, which is tasked with regulating Hong Kong securities, declared SegWit1x futures to be a ‘type 2’ regulated activity under the relevant financial regulations, warning that only those firms licensed to offer futures trading in Hong Kong should be considered by investors.

Citing concerns over the risks of dealing with unregulated operators, the SFC recommended investors to deal only with licensed intermediaries.

The circular was published after the first futures products for SegWit1x went on sale on U.S. exchange CBOE over the weekend. CME Group is expected to become the second exchange to offer futures, with their launch plans set for next week, prompting further guidance from regulators as investors begin to explore these new opportunities.

According to the circular, investors in Hong Kong should work with Hong Kong regulated operators who hold the relevant SFC licenses and are members of the relevant U.S. exchanges.

“Bitcoin futures have been or will soon be launched by certain well-established futures and commodities exchanges in the United States which are regulated by the U.S. Commodity Futures Trading Commission and authorized by the Securities and Futures Commission (“SFC”) to provide automated trading services,” the regulator stated.

“Hong Kong investors may be able to trade in bitcoin futures through an intermediary which is a member of these exchanges….The industry is reminded that a party is required to have an appropriate license with the SFC if it provides any other business services relating to Bitcoin futures,” according to the circular.

The SFC was also keen to point out the availability of other cryptocurrency products, including options, applying similar warnings for investors, while reminding operators that failure to hold the relevant license amounts to a criminal offence.

The comments were wrapped in a general reminder about the risks of cryptocurrency in general, including volatility and limited liquidity.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Surprise, surprise: JPMorgan considers BTC futures trading

An outspoken critic isn’t stopping JPMorgan Chase from examining the merits of entering the BTC futures market, even if that critic is the U.S. banking giant’s highest executive.

On Tuesday, The Wall Street Journal reported that the global financial services firm is “considering whether to provide its clients access to CME’s [Chicago Mercantile Exchange] new [BTC] product through its futures-brokerage unit.”

The report comes on the heels of CME’s announcement that it will launch a BTC futures by the end of the year, although the plans are still subject to regulatory review. CME’s plan is to offer a cash-settled BTC futures contract based on the CME CF Bitcoin Reference Rate (BRR), which the exchange launched in 2016 in partnership with digital trading platform Crypto Facilites.

Oh, the irony

It goes without saying that JPMorgan will be opposing head honcho Jamie Dimon if it pushes through with its reported plan. Dimon has been an outspoken nemesis of the cryptocurrency who predicted in 2015 that BTC wouldn’t survive. The JPMorgan chief executive also called BTC a “fraud” that will eventually “blow up,” warning traders not to trade the cryptocurrency or risk getting fired “in a second.”

“It’s against our rules and they are stupid,” Dimon said back in September.

The outspoken CEO may have been adamantly opposed to BTC, but he does believe in its underlying technology—blockchain. Dimon thinks blockchain can be useful in the future, although its mainstream application “won’t be overnight.”

If all goes to plan, JPMorgan may soon follow the footsteps of Goldman Sachs, which is also reportedly looking at introducing a trading operation involving the cryptocurrency in response to the increased interest among its clients, who are still keen on getting on the cryptocurrency trade. According to reports, Goldman is looking at building “a full-fledged team of traders and sales people” for its planned trading operation.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper. Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Surprise, surprise: JPMorgan considers BTC futures trading

An outspoken critic isn’t stopping JPMorgan Chase from examining the merits of entering the BTC futures market, even if that critic is the U.S. banking giant’s highest executive.

On Tuesday, The Wall Street Journal reported that the global financial services firm is “considering whether to provide its clients access to CME’s [Chicago Mercantile Exchange] new [BTC] product through its futures-brokerage unit.”

The report comes on the heels of CME’s announcement that it will launch a BTC futures by the end of the year, although the plans are still subject to regulatory review. CME’s plan is to offer a cash-settled BTC futures contract based on the CME CF Bitcoin Reference Rate (BRR), which the exchange launched in 2016 in partnership with digital trading platform Crypto Facilites.

Oh, the irony

It goes without saying that JPMorgan will be opposing head honcho Jamie Dimon if it pushes through with its reported plan. Dimon has been an outspoken nemesis of the cryptocurrency who predicted in 2015 that BTC wouldn’t survive. The JPMorgan chief executive also called BTC a “fraud” that will eventually “blow up,” warning traders not to trade the cryptocurrency or risk getting fired “in a second.”

“It’s against our rules and they are stupid,” Dimon said back in September.

The outspoken CEO may have been adamantly opposed to BTC, but he does believe in its underlying technology—blockchain. Dimon thinks blockchain can be useful in the future, although its mainstream application “won’t be overnight.”

If all goes to plan, JPMorgan may soon follow the footsteps of Goldman Sachs, which is also reportedly looking at introducing a trading operation involving the cryptocurrency in response to the increased interest among its clients, who are still keen on getting on the cryptocurrency trade. According to reports, Goldman is looking at building “a full-fledged team of traders and sales people” for its planned trading operation.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper. Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.