Bitcoin made a muted debut on a major global exchange on Sunday, in a milestone for the controversial digital currency that has some investors excited but others nervous.
Trading on a futures contract began at 6pm (2300 GMT) on the Chicago board options exchange (Cboe) at a price of $15 000.
It rose briefly to $16 600 before settling at $15 900 by 2340 GMT, well short of highs in excess of $17 000 on alternative non-regulated online platforms last week.
A futures contract is a financial product that allows investors to bet on whether the currency’s price will rise or fall.
Bob Fitzsimmons, a futures manager at Wedbush Securities described the opening as “quiet” in terms of number of trades, though a flood of visitors to Cboe’s website was enough to bring the portal down.
The Cboe debut is expected to be followed a week later by a rival listing on Chicago Mercantile Exchange.
It marks the first opportunity for professional traders to invest in bitcoin, even as some steer away because of a lack of regulations surrounding the currency.
“It gives it legitimacy. It recognizes that it’s an asset you can trade,” said Nick Colas, of Data Trek research.
Among those cheering the launch are the Winklevoss twins, who have been called the first bitcoin billionaires. Critics include financial commentator Jim Cramer, who warns that prices could tumble once the new trading venues open the door to “short sellers,” who bet on downward moves in assets.
The two launches were made possible after a key US regulator, the Commodities and Futures Trading Commission (CFTC), gave the green light to the exchanges on December 1, while warning “of the potentially high level of volatility and risk in trading these contracts.”
Anticipation of the first mainstream listings for the digital currency has been a catalyst for a sharp price increase in recent weeks. Bitcoin opened 2017 at around $1 000, surged past $10 000 for the first time last month and soared as high as $16 777 on Thursday before retreating somewhat.
The actual opening of the Cboe market, an electronic trading venue, was a low-key affair, lacking the pomp of an initial public offering, which is often marked by the new entrant ringing the bell of the New York Stock Exchange.
