HERE COME THE FUTURES! Gosh, oh boy oh boy. Finally (beginning next week) BITCOIN will have futures and, AND, traders and hedge funds will be able to get SHORT bitcoin. Now there will be a way to pick the top of the bitcoin rally (that’s worked out pretty well, right) and get short right here at the peak of the bubble. How exciting. Finally. ARE YOU CRAZY? Rather than standing by the fire safely you will be able to JUMP IN the fire. I can see it now, EVERYONE will be absolutely positive this is the top, sell short, watch other shorts scramble to cover their shorts from yesterday’s sure fire top and…………..presto, instant money drain. Methinks this new “opportunity” to short bitcoin will assure $20K, $40K, etc. Hmmm, I’ll take a shot………….short 50 bitcoin at $999,999.99 (beating James Altucher’s million dollar call).
“A bitcoin big short is building.
The planned introduction of bitcoin futures contracts at CME Group Inc., Cboe Global Markets Inc. and Nasdaq Inc. will make it much easier to bet on a decline. Hedge funds, which have largely stayed on the sidelines, are waiting for the Chicago Mercantile Exchange’s futures market to open for a fresh opportunity to bet against the cryptocurrency, according to more than a half dozen people trading the assets.
“The futures reduce the frictions of going short more than they do of going long, so it’s probably net bearish,” said Craig Pirrong, a business professor at the University of Houston. “Having this instrument that makes it easier to short might keep the bitcoin price a little closer to reality…”
Some see the bitcoin market as “one of the greatest shorting opportunities ever,” said Lou Kerner, a partner at Flight VC who invests in the cryptocurrency. “You have a lot of zealotry, and a lot of people, including me, who think it’s the greatest thing to ever happen in the history of mankind. You have a lot of people who think it’s a bubble and a Ponzi scheme. It turns out both of them can’t be right…”
Full Story at Bloomberg.com