Categories: Bitcoin Business

Legendary Crypto Short Seller Gloats as CBOE Dumps Bitcoin Futures

Click here to view original web page at
Mark Dow cashed in by shorting the bitcoin price from top to bottom. Now, he's laughing all the way to the bank as CBOE axes its crypto futures market. | Source: REUTERS / Dado Ruvic / Illustration

Former IMF economist Mark Dow enshrined his name in derivatives trading lore when he famously shorted the bitcoin price from its December 2017 peak near $20,000 all the way down to its trough below $3,500 a year later. Now, the legendary crypto short seller is gloating as the first exchange to list bitcoin futures delists the flagship cryptocurrency, perhaps for good.

‘Big Bitcoin Short’ Trader Mark Dow Laughs Off CBOE’s Crypto Futures Exit

Writing on Twitter, Dow joked that he caused the market’s liquidity to dry up when he closed out his epic short position.

Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.

“I guess this is what happened when I stopped trading it,” he wrote. “Thanks for the memories! $XBT R.I.P.”

On March 14, CCN reported that CBOE had suspended the addition of new XBT futures contracts. In its announcement, CBOE said that it chose to axe bitcoin futures while it reassesses its support for crypto products.

“CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019.CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading. Currently listed XBT futures contracts remain available for trading.”

All joking aside, since I had to roll my #bitcoin exposure each month last year, I saw that the liquidity got worse every time. Hard to buy the story about broadening institutional adoption when you see this. $BTC $XBT

— Dow (@mark_dow) March 14, 2019

Dow said that he was not surprised to see CBOE close its bitcoin futures market. Contravening the industry narrative that institutional investors are steadily moving capital into cryptocurrency, Dow said that liquidity in the institutional-focused futures markets got worse every month.

“All joking aside, since I had to roll my #bitcoin exposure each month last year, I saw that the liquidity got worse every time. Hard to buy the story about broadening institutional adoption when you see this.”

CME Sees Record Bitcoin Futures Growth in 2019

Terry Duffy helped launch bitcoin futures on CME in December 2017, and the exchange has reported steady growth since then | Source: Michael Reaves / Getty Images / AFP

Of course, it’s important to put CBOE’s announcement in perspective. CBOE’s bitcoin futures volumes were always far smaller than those of rival CME, the only other US exchange to currently offer crypto futures.

CME reported steady growth in this market throughout 2018, with average daily volume increasing by 119% between Q1 and Q4. Last month, the exchange recorded a record in the amount of BTC futures contracts traded within a single day, as over 18,000 contracts representing a total of 90,000 BTC (~$350 million) changed hands.

Surge in bitcoin price leads to record $BTC futures volume on February 19 with over 18K contracts traded.

— CMEGroup (@CMEGroup) February 21, 2019

CBOE’s Exit a Stunning Reversal for the Crypto-Curious Exchange

Still, CBOE made history in 2017 when it became the first US derivatives exchange to list bitcoin futures. At the time, many cryptocurrency bulls predicted that it would usher in a wave of new investment in the nascent asset class and launch the market to new highs.

Instead, according to analysts at the Federal Reserve, the launch of BTC futures on CBOE and fellow Chicago exchange CME triggered the historic cryptocurrency bubble crash, enabling bears like Mark Dow to make a fortune shorting the bitcoin price as it cratered by more than 80 percent.

Mark Dow shorted the bitcoin price from top to near-bottom, and the Federal Reserve blamed traders like him for the market’s rapid collapse. | Source: Yahoo Finance

While CBOE did not explicitly state that it had permanently halted support for bitcoin, many believe the writing is on the wall, at least in the near-term. In any case, it’s a stunning reversal, given that the exchange raced to become the first to support bitcoin and once boasted that it hoped to launch an entire suite of cryptocurrency products.

Again, those products – including the bitcoin ETF that CBOE has sought to list – could still come down the road, but in this market climate it’s difficult to imagine CBOE taking a chance on another institutional crypto derivative when it failed to build sufficient liquidity in a market as basic as a standard bitcoin futures contract.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

  • Bitcoin Business

Nouriel Roubini Accuses Bit MEX of “Systematic Illegality”

Nouriel Roubini , otherwise known as Dr. Doom for his pessimistic attitude towards bitcoin and crypto, is a professor of… Read More

4 hours ago
  • Bitcoin Business

BitMEX May Be the First Target of the U.S.; Which Crypto Platform is Next?

The crypto industry was taken aback earlier today when news broke regarding popular leveraged crypto trading exchange, BitMEX, being investigated… Read More

4 hours ago
  • Bitcoin Business

HUD suffers setback, CECL delayed, PNC plots expansion: Top stories of the week

A court ruling deals a blow to efforts by HUD to restrict nonprofit housing funds from operating on a national… Read More

4 hours ago
  • Bitcoin Business

Amazon Warns Customers: Those Supplements Might Be Fake

Derek Croucher/Alamy On the second evening of Prime Day , Amazon’s annual sales bonanza, Anne Marie Bressler received an email… Read More

4 hours ago
  • Bitcoin Business

Economist Bashes Libra, Mocks Facebook Crypto as ‘Fake Money’

Economist Thorsten Polleit destroyed Libra in a new article, bashing Facebook's cryptocurrency as nothing more than "fake money." | Source:… Read More

4 hours ago
  • Bitcoin Business

St. Louis Fed Chief James Bullard Agrees Crypto Is Disrupting Economy

Like his boss, Fed Chairman Jerome Powell, James Bullard worries that cryptocurrencies are a menace to the economy. | Source:… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More