The price of bitcoin continues to break records. According to a Bloomberg report the arrival of a new futures contract that makes it easier to place short bets on bitcoin wasn’t enough to undercut the cryptocurrency’s march toward $20,000. Bitcoin touched a record $19,511 just minutes before CME Group Inc (NASDAQ: CME) began offering futures Sunday evening in a move that broadens the market for institutional traders and makes it easier to sell the cryptocurrency short.
“In theory, it does open it up to shorting opportunities, but as always, the devil is in the detail,” said Jeremy Goldwyn, a managing director at Hong Kong-based commodities and financial futures brokerage Bands Financial Ltd, according to Bloomberg. “I’m not totally convinced that this offers a clear enough link to enable people to play the short side and still reap the financial benefit at settlement.”
“Futures have definitely opened bitcoin up to shorting opportunities,” said John Butler, head of wealth services for Toronto-based GoldMoney Inc., which offers bitcoin and gold custodian and storage services. “But shorting something with this much momentum would be brave.”