Categories: Bitcoin Business

Wall Street Bitcoin Futures at a $500 Premium, Why?

Click here to view original web page at www.trustnodes.com

Bitcoin is trading $500 above spot price at CME for the December futures contract, with a premium found for every month.

Even for August, bitcoin is more expensive on CME than on spot exchanges by about $100. While for September and October it’s at around $300, with December having the biggest premium.

Why there is this premium is not too clear, with arbitrage here not quite possible because these are not bitcoin settled futures.

In fact they have almost nothing to do with bitcoin save for people bet what its price will be at the end of the month or at Christmas.

Thus it is possible for bitcoin’s price and CME’s futures price to diverge and in theory they could diverge completely because there is no “real” anchor to reality.

Were these bitcoin settled futures, then there would have been an easier way to arbitrage, but as they are fiat settled, we get this divergence.

A divergence that may well tell us Wall Street is more bullish on bitcoin than other traders.

Since futures price is quite a bit higher in December, then presumably Wall Street clearly think bitcoin’s price will be higher in December.

At that point there would be just 5 months to the halvening, with all that Brexit mess to go through in between and potentially maybe an even bigger mess in Italy where Salvini most probably thinks nationalists have peaked, so he is seemingly rushing to go to the polls.

Apparently Italians have lost fully their head and find some 36% of their fellow men and women would vote for someone who was very much on the fringe.

Di Maio said he would not enter into a coalition prior to winning the election, but he did and maybe now finds himself outmaneuvered by the fox.

Then there’s Hong Kong, diving CNY, financial crisis in now Argentina, Iranian sanctions circumvention, an apparent endless money printing in Venezuela, and on and on as donkeys keep donkying our economies.

In the circumstances it is perhaps no surprise that what may well be more informed traders are a bit more bullish, but whether bitcoin will take that $12,000 and move on, remains to be seen.

Copyrights Trustnodes.com

Even for August, bitcoin is more expensive on CME […]

cinerama

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...
Share
Published by
cinerama

Recent Posts

Luongo: Trump’s Not A 4-D Chess-Player, He’s A Very Simple Creature

Authored by Tom Luongo, Friday night used to be the ‘best night on television.’ But today Friday afternoon is becoming… Read More

5 hours ago

Overstock Still Focusing on Crypto Despite Embattled CEO’s Departure

Overstock was one of the first major companies that expressed extreme interest in utilizing and adopting crypto – an interest… Read More

5 hours ago

Symmetrical Triangle Pattern May Bolster Bitcoin Bulls

Over the past couple of days Bitcoin has found itself caught within a relatively tight trading range and has continued… Read More

5 hours ago

Overstock’s Patrick Byrne: the rise and fall of a blockchain pioneer

Patrick Byrne this week resigned as CEO of US online retailer Overstock. The move closely followed the announcement of disappointing… Read More

5 hours ago

Ethereum & Stellar’s Lumen Tech Analysis –26/08/19

It’s a bullish start to the day for the majors. Holding above key levels would support another breakout later in… Read More

5 hours ago

New tool for OTC trade is based on Ethereum smart contracts

Source: Wikimedia The decentralized platform AirSwap, a trade network driven by the Ethereum platform, launched a tool, called AirSwap Trader,… Read More

5 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