The weekly Market Update is posted at Alpha Baskets and includes the following;
The Chicago Mercantile Exchange will start trading bitcoin futures on December 18th. Aside from making a two way market more accessible, many believe it will pave the way for exchange traded funds to start trading, the idea being that ETFs would create the exposure with derivatives. The hope in some circles is that being able to short bitcoin might dampen volatility, this past week it moved 10% on three different days, two up and one down. During the financial crisis there were some stocks that were banned from short selling which arguably had the opposite effect of what was intended, those stocks kept going down. No one should be surprised if the adoption of a futures market does not result in reduced bitcoin volatility. More and more clients will likely start asking about bitcoin for their portfolios. We continue to suggest advisors spend the time to learn about cryptocurrencies in order to be able to have informed conversations regardless of the conclusions they draw about suitability.
Please click through to read the entire update.
Also, as I announced last week I have also started posting different content at TheMaven.net. The content there is more like the old Random Roger blog posts, with new content going up almost every day. I hope you can check it out and if you inclined please consider registering and following my page, it’s free!