NYSE:ICE offering BTC derivatives, what will happen with price?

[JorisK]

Hi people,

Hoping to see a healthy discussion here about this. Caitlin Long mentioned a two edged sword a few days ago: NYSE:ICE derivatives where investors buy 'paper bitcoins'. NYSE:ICE buys 100.000 and holds BTC (which directly influences the price up), but then sells this to their customers and leverage everything. Example: they let 100 of their customers buy 50.000 BTC from them, not onchain and in a true bitcoin wallet but on their BAKKT app.

What limits are on leveraging? What are your thoughts on this? How will it affect the price? Why would any investor be interested in this?

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[TheQuin]

What limits are on leveraging? What are your thoughts on this?

Leveraging just means that the broker is lending their client the most of the money to place a trade. The limits are set by the broker using their risk assessment, meaning that they have confidence they can close the trade out before the client doesn't have enough funds to cover their loss.

How will it affect the price? Why would any investor be interested in this?

Leveraged products aren't meant for investors, they are hedging and trading vehicles. There is a lot more to the ICE announcement on Bakkt that could influence price in a positive way but leverage doesn't really matter.

https://www.businesswire.com/news/home/20180803005236/en/Intercontinental-Exchange-Announces-Bakkt-Global-Platform-Ecosystem

[GangNamSK]

Hi people,

What limits are on leveraging? What are your thoughts on this? How will it affect the price? Why would any investor be interested in this?

It is difficult to predict and explain. Many factors cause them to fluctuate in the market. Increased or decreased following the trend of the common market. Investors need skills and solutions to reduce the risk.