According to recent data provided by CBOE and CME Group, the volatility and total volume of bitcoin futures in 2018 have been in a gradual decline.  As displayed in the chart below, the Cboe bitcoin futures contract (XBT) volatility for the lead month declined in each month to begin 2018.  In addition, according to data as of a May 22, 2018 trading date, the trading volume for CME bitcoin futures contracts (BTC) in prospective lead months is also low, with as few as 5 trades for September 2018 contracts.  There have been a few instances of volume surges such as in late April when the average daily volume of XBT rose to 8800 in the single-most active session of the CBOE Global Market, according to CBOE.  However, as shown in the final chart below with data from CME Group as of May 22, 2018, the daily exchange volume of bitcoin futures contracts has remained below 6000 for the last month with one exception.

Source:  CBOE XBT Futures Newsletter, dated May 14, 2018.

Source:  Data provided by CME Group.  Based on trade date of May 22, 2018.

Source:  Data provided by CME Group.  Based on trade date of May 22, 2018.

As for market-wide bitcoin futures contracts developments beyond CBOE and CME Group, new tradable products may be on the horizon.  On May 7, 2018, the New York Times reported that the parent company of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE) is looking into whether to allow for the trading of bitcoin swap contracts that would result in the physical delivery of bitcoin.  Currently, the CBOE and CME Group bitcoin futures contracts are settled in U.S. Dollar.

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Photo of Tom Ahmadifar Tom Ahmadifar

Thomas Ahmadifar primarily advises clients on regulatory issues under federal and state securities, commodity, and banking laws. He counsels broker-dealers on matters before the SEC, FINRA and other SROs, including business expansions, changes of control, membership applications and the trading practice rules. In…

Thomas Ahmadifar primarily advises clients on regulatory issues under federal and state securities, commodity, and banking laws. He counsels broker-dealers on matters before the SEC, FINRA and other SROs, including business expansions, changes of control, membership applications and the trading practice rules. In his funds practice, Thomas advises clients in both the registered and private funds spaces.