Will the bubble burst as trading goes mainstream?
Bitcoin faces a potentially momentous moment on Sunday night as trading begins in the first big financial product linked to the cryptocurrency.
The Chicago Board Options Exchange (CBOE) is set to launch its Bitcoin futures contract, a financial product tied to the Bitcoin, that allows investors to bet on whether its price will rise or fall.
It is seen as a key moment because it will allow a new wave of professional money to go into Bitcoin, as well as providing an easy way to short it. Since many in high finance see Bitcoin’s meteoric rise in recent weeks as a classic bubble, a few might be tempted to bet against it. On the other hand, the leaps in its price last week mean it might not be a risk worth taking.
On Sunday, Bitcoin was trading at 15,557, compared to last week’s highs of just over $17,000.
The CBOE futures exchange is set to go live at 6pm Eastern time (11pm GMT), with full trading…