The announcements about the upcoming Bitcoin futures signaled a new chance for adoption from big money investors. At the same time, they provided the cryptocurrency with a lot of legitimacy.
The deadlines for the futures on Dec. 10 and 18 are approaching. As it usually happens in the digital currency world, it seems that people are buying the rumor, while preparing themselves for the probable volatile time that’s coming when futures hit.
More organizations will be offering Bitcoin Futures
According to Bloomberg, Goldman Sachs will be providing client trades on a case-by-case basis.
The spokeswoman for Goldman, Tiffany Galvin wrote:
“As this is a new product, we are evaluating at the moment the risk attributes and specifications for the Bitcoin futures contracts as a part of our standard process.”
Lloyd Blankfein, the CEO of Goldman Sachs is cautious, but not negative to the idea of Bitcoin, in contrast with many of his counterparts like Jamie Dimon.
What will happen after the futures hit?
Futures are still going around the media as a positive thing for Bitcoin, but no one can really know what will happen after they approach.
We should take into account that futures trading allows for profiting when the price falls. Thus, if massive amounts of money come into Bitcoin market in the form of futures, there could be to a degree a price manipulation to send it down.
Futures allow investors to have some kind of protection in a figurative market such as Bitcoin. When they come in at a certain price, and then that price falls, they are able to take out their investment at the same price they came in.
As a result, it makes sense for a big money investor to try manipulating the crypto-market down. Then, he can take his investment out at the same price, and buy Bitcoin again at a lower price.