Bitcoin Futures Haven't Solved a Basic Problem
Hours after Cboe Global Markets' bitcoin futures began trading, it's already clear that futures aren't solving a very basic problem: Whether it's bitcoin futures or closed-end funds like Bitcoin Investment Trust (NASDAQOTH: GBTC), convenient ways to buy or sell bitcoin trade for high premiums to the value of bitcoin.
Bitcoin on the Gemini Exchange traded for $16,600 per coin as of 11:20 a.m. EST. At the same time, Cboe bitcoin futures expiring in January traded for $18,200 per coin, roughly 10% more than the spot market.
In theory, bitcoin futures contracts shouldn't trade for much more than bitcoin on spot markets. An arbitrager could buy one bitcoin on the Gemini exchange for $16,600, and simultaneously sell a bitcoin futures contract at $18,200, locking in a certain profit due to the difference in price.
Source: Fool.com
