Yesterday, just yesterday, two events made Bitcoin news. First, Chicago Mercantile Exchange (CME) announced they would be trading Bitcoin futures by the end of 2017. Then, on CNBC Brian Kelly made a glowing endorsement of Bitcoin as a stable, promising investment. Bitcoin, perhaps as a result of these praises moved to new heights. This morning Bitcoin hit an all-time high of $6624. Breathtaking.
Today, Bloomberg says the CME announcement “legitimizes” Bitcoin. This is a very important distinction for any would-be Wall Street investment. As evidenced by today’s trading volume and all-time high prices, Bitcoin is only beginning to reap the benefits of large investments that were bound to follow. Bitcoin’s market cap is now about $110B, somewhat less than half the size of VISA. Bitcoin is hardly a mainstream idea yet.
There will be a quantum leap in the speed and size of Bitcoin investments when big money Wall Street investors decide to invest. However, as of yet, no big bank has declared a willingness to trade in Bitcoin using client money. There have been no Wall Street investment firms buying or selling Bitcoin for customers. Fidelity has started a Bitcoin mining operation but that is a far cry from trading bitcoin. Quite the contrary, Jamie Dimon, CEO of JP Morgan Chase declared that bitcoin is a “fraud,” and, he would fire anyone in his firm that traded bitcoin. Other big bank CEO’s are not as negative but remain on the sidelines and are cautiously optimistic about Bitcoin’s prospects. This might change very shortly.
Along with Chicago Mercantile Exchange’s (CME) announcement that they would begin trading bitcoin futures by the end of the year, CNBC’s Brian Kelly, who has been a cryptocurrency advocate for several years, today recommended Bitcoin as an investment. This is huge. This could open the floodgates.