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The better question is how the CME is going to replicate the value of a Bitcoin. The funny thing about this is when the real smart ones get there hands on this
by bob_theslob646 9y ago
The better question is how the CME is going to replicate the value of a Bitcoin.
The funny thing about this is when the real smart ones get there hands on this contract (quants), watch out. Goodbye free lunch and hello very efficient pricing.(Low vol)
- kgwgk 9y agoThey don't need to replicate anything, they just need to match buyers and sellers.
- bob_theslob646 9y agoMaybe replicating was too strong of word What I meant was, how they plan on "replicating", constructing the index value ,in which ,they( the CME) will base the value of bitcoin to be. It is detailed here. https://www.cmegroup.com/trading/files/bitcoin-reference-rate-methodology.pdf https://www.cmegroup.com/trading/files/bitcoin-reference-rat... CNBC stated that it is a weighted average of 4 index's in the video, but could not find anything of the sort in the article (https://www.cnbc.com/2017/10/31/cme-plans-to-launch-bitcoin-futures-by-year-end.html https://www.cnbc.com/2017/10/31/cme-plans-to-launch-bitcoin-...)
- kgwgk 9y agoThe press release gives some details. The exchanges are Bitstamp, GDAX, itBit and Kraken. http://www.cmegroup.com/media-room/press-releases/2017/10/31/cme_group_announceslaunchofbitcoinfutures.html http://www.cmegroup.com/media-room/press-releases/2017/10/31...
- paulpauper 9y agobut commodities are much more volatile than stocks though