CBOE announces discontinuation of Bitcoin futures; CNBC contributor says BTC already hit bottom

CBOE, a major US exchange, announced that it will halt Bitcoin futures once its current contract expires in June 2019. The US exchange was the first institution to launch Bitcoin futures back in December 2017. However, it is speculated that a devaluation of 75% of Bitcoin price might have triggered the discontinuation.

According to CNBC, the exchange released a statement announcing that they will not add new Bitcoin futures in March. The company was assessing its approach and did not rule out the possibility of adding other cryptocurrency derivatives, the statement said.

Brian Kelly, Founder and CEO of BKCM LLC, a digital currency investment firm, spoke about the announcement on a CNBC segment of Fast Money Traders.

Brian suggested that the Bitcoin market might have hit its bottom, after trading between the $3,000-$4,000 range. He also added that the Bitcoin market witnessed improvements in its underlying fundamentals since the passing of the worst bear market.

Kelly further added,

“We are starting to see address growth. We have started to see sentiments like this. This tells me that retail traders are out of the picture because the CBOE futures would run contracts for $3900, so I think retails are exhausted. And I think sellers are exhausted and with institutions coming in, where Fidelity acting like a catalyst and coming up.I think all these things combined we might look back and say $3000 was a good time to buy Bitcoin.”

CBOE introduced Bitcoin futures in December 2017 with the intention to garner more institutional involvement. However, institutional involvement has been slower than expected, Brian added.

Brian also stressed the many Bitcoin avenues open to financial institutions. He added that custody had improved, implying that institutions can now buy physical Bitcoins. The need for future contracts was also low, he said, following the increasing robustness of trade functionality.

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