Liftoff: Bitcoin futures are up and trading.
Given the huge buzz around the cryptocurrency, its first day was surprisingly tame – at least by Bitcoin standards.
Futures rocketed 20% at open before dropping back beneath $18,000. That's still nicely above the $16,649 mark Bitcoin was sitting at midday yesterday, but you've got to remember, Bitcoin's up more than 66% since Dec. 1. Reuters' "Breakingviews" noted futures volume was around $50 million, just 0.5% of the volume of actual bitcoins in the prior 24 hours.
Now, it's possible lots of would-be traders were sitting out the first day, pulling a "wait-and-see" on possible expensive glitches.
But then again, the first day doesn't matter much. I think Bitcoin futures will be big – much bigger than they are now.
I'm not trading just yet. It's a little dangerous for my taste, but I will eventually.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.