Both in the event the CBOE future expired and after this, in the event the CME bitcoin future is coming settlement, there was a substantial loss of the bitcoin price. Both futures has a significant low volume and i also would reckon that these are dominated by one liquidity provider\/market maker. This market maker is probably short the longer term and perchance long the location. At expiry, they’ll profit if your prices are low this will let you border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which are easy to manipulate. For CBOE it does not take auction price for Gemini – a young with a tiny volume more often than not.
CME’s model is much better, but nonetheless not very good, VWAP around the four major exchanges is a great idea, but when that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the degree on this type of brief time period is very limited. Even if many large participants would have interests in almost any of these settlement processes they’d almost certainly have a similar position and benefits from exactly the same side with the market manipulation. The VWAP must have been calculated over many hours instead). Concluding is always that we likely will see a large amount of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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