Remember Bitcoin?

We’ll forgive you if you’ve deleted those files from your brain, but Bitcoin is slowly creeping back into the collective investing consciousness of late. Why? Well, more than doubling from $3,500 to $7,000 in starts to put you back in the conversation.

The doubling of Bitcoin and its flirtation with the $9,000 handle again means prices are the highest they’ve been since May of 2018, and about 220% higher than it was in May of 2017, if you can believe it. Although the Wall Street Journal warns that “The [Bitcoin price] gain may be less about demand for bitcoin and more about problems at the embattled exchange Bitfinex.” (mayyybe related to something like this).

(coinmarketcap.com)

One market is paying particular attention to this move, the CME Bitcoin futures contract, which had its best month since launching in May, with the average daily volume reaching more than 13,600 contracts. That’s equal to $515 million notional value or 68,000 equivalent bitcoin, up 27 percent when compared to the month of April. On May 13, bitcoin futures traded a record single-day volume of 33,677 contracts (168,000 equivalent bitcoin or $1.3 billion notional value) while on May 28, BTC hit a record open interest of 5,190 contracts.

It’s not all rainbows and lollipops, though. The CBOE, who was first to market with a Bitcoin futures contract, has shut down their Bitcoin futures product due to lack of interest. This is likely more of a winner take all effect happening between the two exchanges than a commentary on the need/desire to hedge Bitcoin, but is worth noting none the less.

Meanwhile, some futures trading managers are getting more and more involved in the growing futures market, with one manager able to post a 20%+ month in May [Past performance is not necessarily indicative of future results]. Call or email us at invest@rcmam.com for more details on this program’s strategy.

 

 

 

 

 

PS – In May 2019, Bitcoin even rivaled google searches for terms like Trump and Old Town Road (if you know, you know).

(Red=Trump)                              (Red=Old Town Road)

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.

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.

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.

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