A bitcoin futures contracts would provide investors with an opportunity to buy bitcoin and the underlying assets for a much lower price than they would pay for an individual share or other security.
In a recent article, the BBC said bitcoin futures would be a better option than individual stocks and bonds because of the low cost and transparency.
“It would provide a better, more efficient way of investing in bitcoin, with more predictable returns,” said Chris Burnside, the director of research at market research firm Futures Group.
But not everyone is so sure.
Bitcoin futures are also not a perfect option for investors looking to trade a wide range of financial products, according to the BBC.
If you are looking to invest in a specific asset class, like bonds, you would be better off buying individual stocks, according Futures.
For example, bitcoin futures can be very expensive because of volatility, said Futures’ David Scharf.
The volatility of bitcoin is higher than most other financial instruments.
Futures says volatility is the difference between how many shares are issued in a day and how many times they trade.
And if you don’t have access to the internet, you might need to go to a brokerage, which can be expensive, according the BBC report.
“If you need a lot of liquidity in a small amount of time, you may have to choose bitcoin futures,” said Futurist Mike Schumacher.
While Futurists say the volatility is lower, the cost could be a problem.
Futures says the price of a bitcoin can drop as much as 30% during a trading session.
The company has set a price of about $12.50 for one bitcoin, but Futurism analyst Matthew Janssens said that may not be enough for most investors.
“This price is still very attractive to many,” said Jansss.
Still, Futurises analysts are not convinced that a bitcoin future is a great option.
“[The] risks are high for most bitcoin investors,” said Schumachers.
Investors should consider other investment options.
The price of bitcoin could be affected by geopolitical events, such as the bitcoin price falling when US President Donald Trump’s administration declared war on the cryptocurrency.
There could also be an opportunity for people to trade bitcoin futures with other currencies, according Schumaches analysis.
A bitcoin futures trading session would be held in New York, according an analyst at Futures, which is located in San Francisco.
Another potential issue is that futures contracts could be too risky, according Jason Schreier, a bitcoin analyst at the firm Futuristic Research.
So far, there are only a few bitcoin futures companies offering futures products.
Bitcoin futures offer investors the chance to trade their assets with a much higher price than individual shares, which could help lower volatility and increase the price a lot.
But for now, the price could be difficult to find.
Futuris said its data shows bitcoin futures will be more expensive than individual stock or bond offerings.