Bitcoin futures launch sends bitcoin up $1,000

Bitcoin futures went live on Cboe Global Markets, the Chicago-based exchange group, Sunday evening and the price of the red-hot coin shot up.

Cboe’s future contracts, which trade under the ticker XBT, allow investors to bet on the future price of bitcoin. Bitcoin shot up over $1,000 after investors could start purchasing contracts at 6:00 p.m. ET.

According to data from CoinDesk, bitcoin soared from $14,509 a coin at 5:59 p.m. ET to $15,704 at 6:07 p.m. It gave up some of those gains and was trading at $15,178 at 6:11 p.m. The futures contracts were trading at $16,000 soon after the market went live, higher than where bitcoin was trading in the spot market at the time of print.

Trading in the early stages was muted. Only 800 contracts traded within the first two hours of the market being live, according to Cboe. Still, volumes impressed one trader.

“There was more volume than I was expecting,” Garrett See, the CEO of DV Chain, the cryptocurrency trading division of Chicago-based DV Trading, told Business Insider.

“It was difficult for folks to get access to this market on day one since only some brokers were clearing trades for clients,” he added.

JPMorgan and Citigroup, which are two of the largest futures brokers, did not participate in the market Sunday. Nor did Societe Generale. Goldman Sachs said it would clear futures for some clients.

Still, interest in the new market appeared to put pressure on Cboe. Its website experienced outages soon after trading of bitcoin futures was underway. Here’s Cboe in a tweet:

“Due to heavy traffic on our website, visitors to http://www.cboe.com  may find that it is performing slower than usual and may at times be temporarily unavailable. All trading systems are operating normally.” […]

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