I agree with you but I don't. I'm interested to hear your insights... the CME launch is a futures market, and all the ETF's and funds won't buy BTC, they will buy teh futures, that will actually limit the price movements substantially,
I think oil and gas for example were traded on various exchanges , oil prices were super volatile and caused a huge crash around 1981 and then they made oil futures and the prices became way more stable... There is no way the institutional money would be able to buy and sell real bitcoin, it would take forever, and there no exchanges liquid enough for it, so they would treat like a commodity and buy the futures... then the commodity price would be driven by the futures price... not vice versa... Personally I think the CME application fails, it's way too soon...and that is what might pop a temporary bubble and cause the next pullback.
Orion_da
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@Krisworldwide, there are some funds that would actually buy BTC, but i used to work at a $1 billion hedge fund and any time we were trying to buy a serious position in a company for example, we had to trade the debt or the futures, we couldn't buy the stock, even buying $5 million of a $1 billion company would take us 2 to 3 days to enter/exit the position.
werjuststardust
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@Krisworldwide, good point:)
RL_Bot
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@Krisworldwide,
I Agree with your comment
>> even buying $5 million of a $1 billion company would take us 2 to 3 days to enter/exit the position.
But that should not be a problem for Institutional money ( hedge /mutual funds ) to buy Bitcoin Futures on CME exchange . Hedge/Mutual funds who are planning to build a long term position ( holding of 6 months to one year ) in Bitcoin are not in a rush to buy in few days , they can build position over a period of a month .
In the proposed CME Bitcoin Futures contract they specified it is 'Cash settled" , so there is no question of "physically buying Bitcoin" from CME perspective .
I do not understand why you think , can you please explain in detail why they fail ? why it is too soon ??
>> Personally I think the CME application fails, it's way too soon.