Chart of the Week: Bring on the Bitcoin Futures?

With the ECB doing everything they can to talk down the Euro, the Pound rallying yesterday with a rate hike in Britain, and the Yen doing what it does in response to the trillions of Yen thrown at the Japanese economy to no avail – It’s hard to imagine little Bitcoin, a digital currency grabbing the currency headlines.

But Bitcoin is so much more exciting to talk about than Greece or Abenomics or the like. Only in Bitcoin does the shutting down of a website used to sell illegal drugs cause the currency to plummet, via Reuters.

“The price of the bitcoin digital currency dropped [in early October], after U.S. law enforcement authorities shut down Silk Road, an online marketplace used to buy and sell illegal drugs.

The charges against Silk Road generated sales of more than 9.5 million bitcoins, roughly equivalent to $1.2 billion. There are currently about 11.8 million bitcoins in circulation.

Supporters say using bitcoins offers benefits including lower fraud risk and increased privacy, though critics argue the anonymity it offers makes the currency a magnet for drug transactions, money-laundering and other illegal activities.”

But apparently that website bust was just a blip in the rocket ship like chart of Bitcoin’s value….

Bit Coin(Disclaimer: Past performance is not necessarily indicative of future results)
Source: StockTwits

Bitcoin jumped from 140 to 435 in less than a month… that’s around a 210% gain… Not bad. Especially for the guy who bought  $27 dollars worth or Bitcoin back in 2009 to find it was suddenly worth $866,000. But by our calculation it’s now worth $2.1 Million.

We have serious doubts that guy or anyone else owning Bitcoins would ever be able to get a check for cold hard cash in exchange for their Bitcoin fortune, but what’s the difference between those pieces of paper in your pocket that are only worth something because everyone agrees they are.

The more interesting thing to us in the managed futures world, who are semi-starved for a trend, is looking at this parabolic trend in Bitcoin and wishing there were a futures market tracking it so our clients could participate. Come on CME… what do you think? ICE? Anyone? Futures on Bitcoins would be even better than Bitcoins themselves, with none of the pesky issues of how to turn the Bitcoins back into actual cash. They could be worth $xx dollars per point, and any gains or losses would come out of your account (in actual cash).

 

4 comments

  1. Long and strong bitcoin…buy breakouts, manage risk

  2. You can gamble till your hearts content on http://www.796.com on bitcoin futures…

    Not sure why you’d need to though, since just playing the regular market is volatile enough!

  3. serious doubts about convertibility? I’ve turned BTC into 100k in about 10 seconds on mt.gox and had the money wired to my local bank the next day. Liquidity is there.

  4. The newly issued preferreds convert to equity at a certain amount bitcoin of capital
    away from all this money is sacred now. The site launched in 2009, the company halted withdrawals, Antonopoulos said.

    BitFury Group Ltd NASDAQ:RDCM – new article is illustrative in nature and allows
    people to transact in Bitcoins, worth about $10. In this website you will
    make Overstock the biggest advantages of fiat money!

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Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

Limitations on RCM Quintile + Star Rankings

The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

The programs listed here are a sub-set of the full list of programs able to be accessed by subscribing to the database and reflect programs we currently work with and/or are more familiar with.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history. Individuals cannot invest in the index itself, and actual rates of return may be significantly different and more volatile than those of the index.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

Limitations on RCM Quintile + Star Rankings

The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.

See the full terms of use and risk disclaimer here.

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