Bitcoin futures started trading on Sunday and what has been witnessed is a very volatile picture with price swinging above $15,800 with 715 cash-settled contracts traded. With trading on CBOE Global Markets Inc’s CBOE Futures Exchange, bitcoin has been receiving a lot of attention. The futures were seen to open at $15,460, surging above $16,500 and then rising to water mark of $19,000 per single coin, followed by a fall later. The prices retreated steeply to around $US13,459 on Sunday post noon.
The sinusoidal movement in the price is keeping investors on the toes; while being exchange-listed and emerging as a regulated product with enabling investors to bet on its price movements without banking on a digital wallet has been rejoiced by the market, the risks on trading and spot pricing prevail. The impact on futures market is thus portrayed to be bringing more jitters to the already volatile market. As a measure, CMEs futures contracts have been said to be linked with price limits of 20% above or below bitcoin’s reference point in order to avoid trading with an intention to capitalise on movements above the limit.
Amidst this, the bitcoin craze has positively impacted semi-related areas of financial markets entailing block-chain companies, digital currency groups and cryptocurrency funds. In such a scenario, stocks of companies that rely on block-chain technologies are rallying a bit. While financial experts are split on the cryptocurrency, the underlying block-chain technology is grasping some attention now.
For instance, many investors are considering snapping into ASX stock that has signalled for the use of a block-chain based distributed ledger to replace its decades-old settlement and clearing system, Clearing House Electronic Sub-Register System (CHESS). At the moment, the stock is trading at a high level and any dip can be monitored for an investment evaluation. On one hand block-chain player, DigitalX (ASX: DCC), has almost rallied up to 475% in last six months and looks relatively overvalued, securities of Change Financial (ASX: CCA) that moved up over 15% in the same period are worth a look given the group’s intention to invest in the Ivy Project which owns IvyKoin. Other crypto-exposed stocks that are little speculative ones include Reffind (ASX: RFN) and Zyber Holdings (ASX: ZYB), which are worth a look with latter rising 225% in last six months and the former employing a block-chain expert. Another stock that has gained traction lately is First Growth Fund (ASX: FGF) that aims to set up a subsidiary digital currency. Then we have the miner, Yojee (ASX: YOJ) that has launched block-chain based autonomodal supply chain digitisation product, which is again trading at slightly high levels.
Overall, investors with a risk appetite can evaluate cryptocurrency exposed stocks for some exposure owing to the prevailing hype, and this would enable buying into the currency without a direct exposure.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.