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Bitcoins / Breaking News

Are Bitcoin Futures Dangerous?

Wall Street banks are warning about the dangers of Bitcoin futures. The Futures Industry Association, which represents the big banks and brokers warned about the risks of trading Bitcoin futures contracts that have not been properly studied.

They released an open letter the US Commodity Futures Trading Commission saying that the speedy certification of Bitcoin future does not allow for proper public transparency and input.

Nasdaq is set to launch its own Bitcoin futures in 2018, and the Chicago Mercantile Exchange and the Chicago Board Options Exchange will list the contracts later this month.

It is believed that these announcements have helped to propel Bitcoin prices to new highs, because they were seen as signs that big mainstream investors are becoming interested.

Bitcoin prices have soured in the last 48 hours, gaining over $4,000, which has made the FIA concerned that the exchanges regulated by the CFTC have been allowed to self certify their new Bitcoin contracts. They believe that a more thorough and considered process will allow exchanges and clearing houses more time to study trading limits and other ways to protect against price swings.

The group stated that;

“The recent volatility in these markets has underscored the importance of setting these levels and processes appropriately and conservatively…We remain apprehensive with the lack of transparency and regulation…whether exchanges have the proper oversight to ensure [it] is no susceptible to manipulation, fraud and operational risk.”

The CFTC has warned investors about the dangers of Bitcoin, saying that the exchanges are largely unregulated and outside the agency’s purview. Their chairman said;

“Bitcoin…is a commodity unlike any the commission has dealt with in the past…investors should be aware of the potentially high level of volatility and risk in trading these contracts.”

So financial experts are warning investors of the dangers, but what are your views on Bitcoin futures?

Image Sources:
https://www.flickr.com/photos/stevegarfield/11209276764/
https://www.flickr.com/photos/electronicfrontierfoundation/9549921438/

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Frances is a writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.