Bitcoin futures impact price more than spot markets: Wilshire Phoenix

Bitcoin futures impact price more than spot markets: Wilshire Phoenix


A new report from investment firm Wilshire Phoenix claims that the Chicago Mercantile Exchange’s, or CME’s, cash-settled Bitcoin futures trading products affect Bitcoin’s price even though they do not directly involve actual real Bitcoin (BTC).

“The findings of Wilshire Phoenix indicate that CME Bitcoin Futures contribute more to price discovery than its related spot markets,” said an Oct. 14 report from Wilshire Phoenix, adding:

“A leading futures market suggests the existence of a robust base of traders who may trade on such markets for many reasons such as trust in the exchange venue and lower latency.”

Price discovery essentially refers to how each actual Bitcoin is valued on the market — its going market rate, or spot price. Wilshire’s report essentially found that these CME products affect the price of BTC more than the actual BTC itself, which trades on crypto-native exchanges. 

Launched in December 2017, CME’s Bitcoin futures do not handle spot Bitcoin. Participants trade contracts

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