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| Bitcoin futures trading begins on CBOE exchange in Chicago | Bitcoin futures trading begins on CBOE exchange in Chicago |
| (about 2 hours later) | |
| Bitcoin has begun trading on a major exchange for the first time. | Bitcoin has begun trading on a major exchange for the first time. |
| It launched on the CBOE futures exchange in Chicago at 23:00 GMT Sunday, allowing investors to bet on whether Bitcoin prices will rise or fall. | It launched on the CBOE futures exchange in Chicago at 23:00 GMT Sunday, allowing investors to bet on whether Bitcoin prices will rise or fall. |
| In the lead-up to its futures debut, the value of the digital currency has surged. | In the lead-up to its futures debut, the value of the digital currency has surged. |
| Bitcoin's introduction to the CBOE has been seen by some as a step towards legitimising the currency. | Bitcoin's introduction to the CBOE has been seen by some as a step towards legitimising the currency. |
| The move is expected to be followed next week by a listing on the rival Chicago Mercantile Exchange. | The move is expected to be followed next week by a listing on the rival Chicago Mercantile Exchange. |
| CBOE trading saw the Bitcoin futures contract expiring in January rise 17% from $15,000 to above $18,000. | CBOE trading saw the Bitcoin futures contract expiring in January rise 17% from $15,000 to above $18,000. |
| What are futures? | |
| Futures are contracts that allow investors to bet on the price of something at a future date. | |
| Investors can now bet on Bitcoin rising or falling in price without actually owning them. | |
| Futures are typically based on the price of a real commodity - such as oil. | |
| One of the controversial aspects of Bitcoin is that some do not see it as a "thing". Although it is called a currency, it can be argued it is an asset, or commodity, without any actual use or real assessable value. | |
| An exchange insider said its start was low key, with "no champagne". However, CBOE tweeted to warn that its website was running slowly and could be temporarily unavailable. | An exchange insider said its start was low key, with "no champagne". However, CBOE tweeted to warn that its website was running slowly and could be temporarily unavailable. |
| Anticipation of the first mainstream listings have helped the controversial currency soar past $10,000 and then over $17,000 on Thursday before retreating. The price of Bitcoin stood at about $16,600 on Monday, according to Coindesk.com. | Anticipation of the first mainstream listings have helped the controversial currency soar past $10,000 and then over $17,000 on Thursday before retreating. The price of Bitcoin stood at about $16,600 on Monday, according to Coindesk.com. |
| Nick Colas, of Data Trek research, said the futures listings gave Bitcoin "legitimacy - it recognises that it's an asset you can trade". | Nick Colas, of Data Trek research, said the futures listings gave Bitcoin "legitimacy - it recognises that it's an asset you can trade". |
| Chris Ralph, chief investment officer at St James's Place told the BBC's Today programme that he remained cautious about the currency. | Chris Ralph, chief investment officer at St James's Place told the BBC's Today programme that he remained cautious about the currency. |
| "I refuse to use the word legitimate, but it's probably moved out of the shadows into the open," he said. | "I refuse to use the word legitimate, but it's probably moved out of the shadows into the open," he said. |
| "But what I think it means is more people in the conventional investment banking market will take a look at Bitcoin. | "But what I think it means is more people in the conventional investment banking market will take a look at Bitcoin. |
| "It has been described as the asset class of 2017 but when we went into the year no one would have called it an asset class." | "It has been described as the asset class of 2017 but when we went into the year no one would have called it an asset class." |
| What is Bitcoin? | What is Bitcoin? |
| The CBOE and CME launches were made possible following approval by the US Commodities and Futures Trading Commission (CFTC). | The CBOE and CME launches were made possible following approval by the US Commodities and Futures Trading Commission (CFTC). |
| However, the regulator has warned investors about the "potentially high level of volatility and risk in trading these contracts". | However, the regulator has warned investors about the "potentially high level of volatility and risk in trading these contracts". |
| Its supporters include the Winklevoss twins, who have been called the first Bitcoin billionaires, while critics include CNBC financial commentator Jim Cramer. | Its supporters include the Winklevoss twins, who have been called the first Bitcoin billionaires, while critics include CNBC financial commentator Jim Cramer. |
| He argues that futures trading opens the door to "short sellers" that bet on downward moves in asset prices. | He argues that futures trading opens the door to "short sellers" that bet on downward moves in asset prices. |
| Bitcoin is not regulated by any country's central bank and has no universally recognised exchange rate. | Bitcoin is not regulated by any country's central bank and has no universally recognised exchange rate. |
| CBOE says trading will be suspended for two minutes if Bitcoin prices rise or fall by 10%, in an attempt to reduce wild fluctuations. | CBOE says trading will be suspended for two minutes if Bitcoin prices rise or fall by 10%, in an attempt to reduce wild fluctuations. |
| "We are committed to continue to work closely with the CFTC to monitor trading and foster the growth of a transparent, liquid and fair Bitcoin futures market," CBOE said. | "We are committed to continue to work closely with the CFTC to monitor trading and foster the growth of a transparent, liquid and fair Bitcoin futures market," CBOE said. |
| The Futures Industry Association, which includes some of the world's biggest derivatives brokerages, has criticised the CFTC's decision, arguing that insufficient attention has been paid to the risks involved. | The Futures Industry Association, which includes some of the world's biggest derivatives brokerages, has criticised the CFTC's decision, arguing that insufficient attention has been paid to the risks involved. |