Bitcoin’s triumphant debut on Wall Street hasn’t ended the financial industry’s scepticism.
The new breed of futures contracts that launched on Cboe Global Markets' exchange late Sunday quickly became a 24-hour microcosm of bitcoin’s own wild ride this year, marked by technical glitches and surging valuations. The first day left true believers cheering, yet kept many mainstream financial professionals peering uneasily from the sidelines.
While the derivatives were a success by some key measures - they didn’t blow up - their 24 per cent rise in price in the first session also bolstered longstanding misgivings about speculation. The contracts offer an easier way for investors to short the cryptocurrency, but instead buyers bid them up as much as 13 per cent higher than the underlying asset - setting off two temporary trading halts along the way. That gave new oomph to the rally and debate.
“The premium is a bullish indicator,” said Michael Kazley, co-founder of Crescent Crypto Asset Management, acknowledging he assumed the contracts would more closely track the cryptocurrency. “It can be explained by demand for exposure to the price of bitcoin from investors who otherwise cannot or do not want to own actual bitcoins."
Others saw the gap as a sign that it may not be possible to marry the virtual currency with the traditional financial industry. When contracts expire, buyers get cash - not bitcoin itself - weakening links to the underlying asset. The worry is that derivatives will act too independently.
“The futures market opening was a mild disaster in many respects,” said Aaron Brown, a former managing director at AQR Capital Management who invests in the cryptocurrency and writes for Bloomberg Prophets. “It was supposed to mimic the price of the physical, it wasn’t supposed to hit limit triggers twice.”
Wall Street trading desks have been yearning for more volatility in many asset classes this year, so they can make more money handling client transactions. Bitcoin may be too volatile. An industry group made up of big banks, brokers and traders said last week it was concerned that the cryptocurrency’s volatility could lead investors to default on contracts if prices swing hard.
Some of the world’s largest banks maintained their cautious stance on Monday. Firms including JP Morgan, Citigroup and Morgan Stanley are continuing to evaluate whether they’ll offer clearing of the futures, according to people with knowledge of their deliberations.
Cboe launched bitcoin futures at 6pm New York time on Sunday. During the first hour, traffic on its website was so heavy that it caused delays and temporary outages, without interfering with trading systems. CME Group, the world’s biggest exchange owner, is set to launch similar products on December 18.
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The futures trading legitimises bitcoin to some degree, said Kevin Grimes, president of Grimes & Co. It allows more institutional money to flow in, while giving firms a way to hedge positions.
The price gap shows people are seeking exposure to bitcoin without buying it directly, he said. “So in the short run that could change the supply and demand a little bit,” he said. “But in the grand scheme of things it probably is a good thing for bitcoin structurally, because it will allow for larger amounts of institutional money to more comfortably buy positions.”
The new futures will probably help create a more regulated and steady underlying market, paving the way for more additional products, hedge fund lawyer Stephen Bielecki of Kleinberg, Kaplan, Wolff & Cohen wrote in a note Monday. “Many anticipate” that the US securities and exchange commission will eventually approve an exchange-traded fund tied to bitcoin, he said.
For its part, bitcoin rose 9.6 per cent to $17,148 on Monday - a roughly 17-fold advance this year. It was at 16,859 at 1..45am UAE time on Tuesday.
“Our view on bitcoin is unchanged,” said Tim Ng, chief investment officer of Clearbrook Global Advisors. “The valuation has no basis, as there are no assets to back it, nor does it have the faith and full credit of a recognised entity such as a central bank. This has been a one-way street with people putting in money, and no one coming out. ”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
Specs
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Torque: 175Nm
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KILLING OF QASSEM SULEIMANI
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Tori Amos
Native Invader
Decca
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Mohammed bin Zayed Majlis
Squads
India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.
Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.
Naga
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