The Chicago Board of Exchange, or Cboe, allows investors to buy or sell Bitcoin futures. This allows a person or organization to only have to pay for 44% of Bitcoin’s price, giving them a leveraged position. However, future contracts have expiration dates, which makes a risky investment even riskier.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.
Current contract expires on Wednesday
The Cboe currently has four monthly Bitcoin contracts available. The closest one expires this Wednesday, and just over the past week it traded between $8,380 at its low point to $11,710 at its high, a 28.4% range. One news item that created this volatility was the SEC announcing that cryptocurrency trading platforms needed to register with it.
Bitcoin’s price on the Cboe closed at $9,257 on Friday. Since there is no physical aspect to Bitcoin all of its contracts will need to be closed before 2:45 pm on Wednesday or settled if the investor does not buy or sell their position. While there are many factors that drive Bitcoin’s price there may be some added volatility this week, and especially on Wednesday as the contract expires.
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