Both if the CBOE future expired and after this, when the CME bitcoin future is on its way settlement, there is a considerable loss of the bitcoin price. Both futures has a good low volume and that i would reckon that they may be covered with one liquidity provider\/market maker. Forex maker is most probably short the future and possibly long the spot. At expiry, they’ll profit if the price is low and have a border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which are simple to manipulate. For CBOE it is the auction price for Gemini – a young using a tiny volume more often than not.
CME’s model is best, but nevertheless of low quality, VWAP for the four major exchanges a very good idea, but when that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the volume on this type of brief time span is quite limited. Even when many large participants might have interests in a of those settlement processes they’d most likely have a similar position and advantages of precisely the same side with the market manipulation. The VWAP should have been calculated over hrs instead). The conclusion is the fact that we likely will see a large amount of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
For details about bitcoin please visit webpage: click now.