Bitcoin futures may be more important than many in the market appreciate, according to JPMorgan Chase & Co.[SINGAPORE] Bitcoin futures may be more important than many in the market appreciate, according to JPMorgan Chase & Co.
Recent reports from cryptocurrency asset manager Bitwise and the Blockchain Transparency Institute indicate that only a small percentage of reported trading may be authentic. If only around 5 per cent of reported May trading of US$725 billion is genuine, it would imply that the actual volume of Bitcoin trading on cryptocurrency exchanges in the month was around US$36 billion, JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a report Friday, working with data from Coinmarketcap.com.
That compares with an estimated aggregate volume of US$12 billion on the CME and Cboe futures contracts, JPMorgan said, itself a jump from April's US$5.5 billion and a first-quarter 2019 monthly average of US$1.8 billion. A major implication of this is that"the importance of the listed futures market has been significantly understated," Mr Panigirtzoglou wrote."The report by Bitwise credits the traded futures as an important development in allowing short exposures that enabled arbitrageurs in properly engaging in arbitrage, and that the futures share of spot Bitcoin volumes increased sharply in April/May.
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Source: The Straits Times - 🏆 8. / 63 Read more »