FIRST AIRED: December 11, 2017

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>> A new chapter for Bitcoin, the world's largest cryptocurrency has begun trading on a major exchange for the first time. Bitcoin futures jumped over 20% before easing back. The surge may have caused an early outage at the Chicago-based CBOE Global Markets website. Reuters' Jemima Kelly says these aren't the first Bitcoin futures we've seen.
>> The point about this is that these are futures offered by one of the world's biggest derivatives exchanges on a completely regulated exchange. And they're cash-settled as well, which is important. Because that means that Investors who want exposure to BitCoin don't actually have to hold the cryptocurrency itself and all the risks that might come with that.
>> Futures are contracts that allow investors to bet on the price of something at a future date. Backers hope an exchange listed, regulated product will encourage wider use and legitimacy, making it easier for mainstream investors to bet on BitCoin's rise or fall. In the lead up, the value of BitCoin surged.
It's boasted a gravity-defying 15-fold gain since the start of the year, with one coin now worth around $16,000. One month future contracts are trading at about a 10% premium to that.>> Which indicates that investors still feel like there is more of this rally to go, despite lots of warnings that this massive bubble that's gonna bust.
If you look at the futures pricing, it indicates that the rally is expected to continue. However, 10% in a month would be a much slower pace of growth than we've seen in recent weeks.>> Market participants say the launch won't necessarily reduce volatility. So while it's a move towards the mainstream, many big U.S. banks and brokerages are still wary about diving into Bitcoin.