Bank transfers, especially international bank transfers, can be incredibly bitcoin security risk with many players both directly and indirectly involved. This on the surface makes lots of sense but when you consider that in the US alone there are around 6,800 federally insured financial institutions and that there are over 200 sovereign nations that this quickly becomes an unworkable approach.
Something else that many don’t realize is that not all banks belong to these organizations. As a result there is a routing problem that’s not dissimilar to the routing problems on the internet — there are many ways those funds might get transferred from one location to another each with their own cost and performance penalties. But if only some banks belong to these organizations and every bank doesn’t have an account with each other how do they facilitate the interbank transactions? Over the years numerous attempts have emerged to modernize the banking system but interests are entrenched and something as fundamental as banking doesn’t change overnight. The efforts that have been successful have either looked like new products for banks to sell or solve immediate and tactical cost structure issues in their businesses. One of the reasons I like Bitcoin is it represents a model where this slop and inefficiency can be removed which can dramatically speed up the financial system at the same time it has the potential to significantly reduce costs to all the players in the ecosystem and in the process kick off a new wave of innovation. Digital Signatures and the fallacy of Good, Cheap and Fast.
This brings many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. XBTSM futures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions. XBT futures are cash-settled contracts based on the Gemini’s auction price for bitcoin, denominated in U. 2014 that allows customers to buy, sell, and store digital assets such as bitcoin, and is subject to fiduciary obligations, capital reserve requirements, and banking compliance standards of the New York State Department of Financial Services.
XBT futures provides a way for you to buy and sell bitcoin futures in a highly regulated marketplace nearly 24 hours a day, five days per week. This gives you the flexibility to invest and divest at the optimal time for your specific trading strategy. XBT futures provides investors with the opportunity to buy, sell and trade bitcoin futures or implement your trading strategies without having to pay for the actual currency. Learn how Gemini runs a bitcoin exchange.
XBT futures is a cash-settled contract that settles to a single, tradeable auction price. In designing XBT futures, Cboe leveraged its significant product development expertise to design an instrument that allows participants to implement trading strategies in a manner to which they are accustomed. The single price settlement process gives participants the option of using XBT futures to hedge their exposure in underlying bitcoin or gain exposure to traded bitcoin prices without holding bitcoin. Where Can I Trade XBT Futures? Bitcoin futures based on the Gemini auction prices are traded exclusively at Cboe Futures Exchange.