Can Bitcoin be Tamed?

That’s what the CME seems to think. The venerable exchange is about to start trading listed BTC futures, which will allow for both long and short investors to express a view. Here’s what CME’s Chairman Emeritus Leo Melamed is saying (via Reuters):

Melamed said he expects major investors to take part in bitcoin futures, which the exchange plans to start by the end of year.

“That’s a very important step for bitcoin’s history… We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules,” Melamed told Reuters in an interview.

The futures will allow investors to short-sell bitcoins, making two-way bets possible, a development that he expects will attract major institutional investors, not just speculators.

That’s interesting, I thought part of the allure of trading Bitcoin futures was the volatility. Guess not?

As I pointed out in my piece An Evening In Wonderland and before that in You can practically smell it in the air, it’s only a matter of if, not when, the big money comes into this “asset class.” Especially if we make it through the end of the year without a major catastrophe.

Oh, and this bears pointing out – you probably missed this but I didn’t…

Bloomberg did a story yesterday about the new effort at the SEC to streamline the ETF approval process. They want to make it easier and more transparent for new entrants and existing fund families to launch products. And guess who they picked to run it:

To lead the effort, Clayton hired ETF specialist Dalia Blass to run the investment management unit. Blass, who worked on the earlier proposal as an SEC staff member. rejoined the agency in September after a stint at law firm Ropes & Gray. The firm advised Tyler and Cameron Winklevoss on their failed bid to win approval for a bitcoin ETF.

Blass has told some industry executives that the SEC is moving quickly on an ETF rule, according to one of the people. She also noted that Clayton prioritized ETF regulation in an outline of his regulatory agenda submitted last month to the Trump administration, the person said. The document hasn’t yet been made public.

So, to recap, it’s about to get easier to bring new ideas into the ETF marketplace and get them registered and trading. And the woman in charge was an advocate for the Bitcoin ETF that didn’t get through the first time. You think it’s not going to happen now? I would say it’s just become a fait accompli with this development. A Bitcoin ETF would open the floodgates to the trillions of dollars currently held in brokerage accounts around the country (around the world).

I’m not saying everyone will want to start trading it, but if only a fraction of a fraction of a fraction start buying, selling and allocating, it’s a whole new ballgame. There’s less than $150 billion currently in the cryptocurrency. Recall the advent of GLD and how it transformed the gold market forever as a reference point. An established futures market along with a more retail friendly ETF will supercharge interest in this space.

So, I’m not sure that the thing gets tamed so much as turned into yet another mainstream trading vehicle that people of all levels of experience and sophistication will use to act like children.

My guess is that the initial impact will be bullish, but like everyone else I’m just making this up as I go along.

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. eatverts.com commented on Sep 22

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  2. THC Concentrates for Sale commented on Sep 23

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  3. bitcoin evolution review commented on Sep 29

    … [Trackback]

    […] There you will find 39323 more Information on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  4. 사설토토 commented on Oct 16

    … [Trackback]

    […] Here you will find 38995 more Info on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  5. tangerine banque signin commented on Nov 24

    … [Trackback]

    […] Here you can find 55231 more Info on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  6. bmo online banking for business commented on Nov 26

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  7. Agile DevOps commented on Nov 27

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  8. where to buy methadone online usa commented on Dec 10

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  9. regression testing commented on Dec 18

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  10. CI CD commented on Dec 20

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]

  11. KIU-Library commented on Dec 29

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2017/11/07/can-bitcoin-be-tamed/ […]