Crypto market has seen rise and mostly bloody days over the week due to regulation alert and ban in few parts of Asia. Amidst this comes the news of expiration and settlement of first Bitcoin futures contracts.
Launched last month, the first Bitcoin futures was expired and settled at $10,900, according to reports by 4:00 p.m. ET Gemini Exchange Bitcoin auction. The price of BTC at the time of launch was $13,400 and it rose to $15,00 on the same day.
The cash-settled contracts allow the investors to bet if the price of Bitcoin will be high or lower than the buying price, and guess it was the ones those bet on lower price, who came on the top. Over 124,000 contracts were sold across expiries, valuing almost $1.5 bn.
Chairman and CEO of CBOE Global Markets, Ed Tilly, defined this as a successful run,
“Our regulated market experienced a smooth operational close and the settlement process worked as designed. This is an encouraging initial milestone, and we look forward to working with customers to power the growth of this nascent market.”
Recent market drop can be due to multiple reasons like regional clampdowns, major holidays in Asia, or tax financial year end. If the expiration of first contract had some effect on crypto market, will only come to light in some time.