Tom Chippas, the CEO of ErisX Digital, spoke about the current status of its Bitcoin futures contract, and commented on who was currently buying into Bitcoin, considering the rise of futures volume, during an interview with TD Ameritrade Network.
Chippas was aksed who he thought was buying Bitcoin, whether it was someone who was running a pension fund or a hedge fund, and whether there was a way to find out. To this, he stated,
“[…] Well, there’s no one place to find out, so to answer the second part of that first. But it’s definitely being done. What I would say is we have a market that’s still evolving specifically there’s a point in click, retail trading going on for sure […]”
He further stated that there were some institutional asset management, mainly hedge funds. According to the CEO, the main activity was taking place in the Over-the-Counter [OTC] trading platforms, where counterparties agree to trade individually and those trades “never print to tape anywhere”. Chippas went on to state,
“[…] one of the things we will be providing is a clearinghouse, allowing counterparts to agree that block trade and then that information would come into our market data. So, it would be available to the appropriate controls around it, much like is required in futures today […] it’s something that we would be bringing to spot crypto […]”
Chippas stated that ErisX’s spot market has been live for nearly a month and that the futures was still subject to “final licensing” requirements from the CFTC, adding that they were “at the late stages of those conversations.” Further, the CEO spoke about the drop of the XBT contracts, stating that there would be experiments, which would have different results. He added that the development of a robust spot market, which has a reliable price, was going to be important for multiple players.
[…] You need market players to provide inter-day liquidity. You need producer, hedgers, speculators and that’s what we’re trying to grow, trying to bring minors in as well as really give that fulsome market. So that you have price discovery happening not just on one side of the way but across multiple counterparts with different time horizons.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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