By Justin Spittler, editor, Casey Daily Dispatch
Bitcoin just went mainstream.
I’m not saying this because teachers, plumbers, and librarians are getting filthy rich off bitcoin…or because cryptos are the biggest story in the investing world.
I’m saying this because the CME Group just made a historic decision.
The CME Group runs the world’s largest options and futures exchange. On Tuesday, it said that it will introduce its first-ever bitcoin futures contract.
This contract will track the price of bitcoin. And the CME Group plans to introduce it by the end of the year.
• The price of bitcoin surged 19% since this story…
It’s now trading seven times higher than where it was at the start of the year.
But it should head much, much higher.
The market for bitcoin could even soon triple in size because of this historic decision.
I’ll show you why in today’s essay. I’ll also show you how to get in front of this coming stampede.
But you first need to understand something important.
• The “smart money” barely owns any bitcoin…
This refers to institutional investors, which includes hedge funds, money managers, and sovereign wealth funds.
You might find this hard to believe. After all, institutional investors are usually the first to invest in groundbreaking technologies.
So, why don’t they own any bitcoin?
Simple. They can’t.
• You see, many institutional investors manage billions of dollars…
Some manage trillions.
When you oversee that much money, the stakes are high. So, these firms must hedge their bets when they make big trades.
There are many ways to do this. But the most common way is with futures contracts.
Now, the actual mechanics of hedging with futures are complicated. But they basically allow big institutional investors to protect themselves against adverse price movements.
In other words, they act like insurance if a big trade goes against you.
Up until now, big institutional investors haven’t been able to do this with bitcoin.
But that’s about to change…
• LedgerX just introduced the world’s first bitcoin options contract…
LedgerX is the only federally regulated exchange and clearing house for digital currencies.
Two weeks ago, it held a “soft launch” of its bitcoin options product.
The exchange did $1 million in trades in the first week. The next week, it cleared $2 million.
That’s much better than people expected, but let’s be real. A couple million dollars is nothing for big institutional investors.
That’s why the CME Group’s announcement is such a game changer…
• The CME Group handles 3 billion contracts every year…
That adds up to about $1 quadrillion in volume.
In other words, it’s a much bigger deal than LedgerX.
So, why did the CME Group do this? Simple. Its clients are begging for a bitcoin product.
And the CME Group plans to give that to them by the end of the year.
When that happens, it will become the first major exchange to embrace bitcoin. But it won’t be the last…
• The Chicago Board Options Exchange (CBOE) has also embraced bitcoin…
The CBOE is the largest U.S. options exchange.
Like the CME Group, it also plans to launch its own bitcoin futures contract. And it could do so before the end of the year.
According to CBOE chief strategy officer John Deters, this product will make it much easier for many of its clients to speculate on bitcoin:
“People will be able to settle in cash,” Deters said. “So you can take a speculative position without touching bitcoin itself, which helps make it more attractive to all sorts of folks.”
I cannot overstate how important this is…
• Institutional investors manage about $30 trillion…
That’s about 250 times bigger than the entire bitcoin market.
Now, these big firms obviously aren’t going to move all their money into cryptos. But they won’t need to for bitcoin to skyrocket.
If they put just 1% of their money into bitcoin, that’s $300 billion. That would cause the bitcoin market to nearly triple in size.
But that’s not the only reason to be bullish on bitcoin today…
• The CME Group’s decision also paves the way for bitcoin ETFs…
But don’t just take my word for it.
ProShares and VanEck, two of the world’s biggest providers of exchange-traded funds (ETFs), are already working with the U.S. Securities and Exchange Commission (SEC) to introduce their own bitcoin ETFs.
If they succeed, it will become easier than ever to invest in bitcoin. And that will bring even more everyday investors into bitcoin.
• In short, the floodgates of the bitcoin market are about to rip open…
When they do, billions of dollars of pent-up demand will pour into what is still a relatively tiny market.
That’s obviously something you want to get in front of. So, consider speculating on bitcoin if you haven’t already.
Of course, I realize that buying bitcoin might sound intimidating. After all, it’s not like you can buy bitcoin through your broker.
But trust me. It’s not as hard as you think.
I know because I just bought bitcoin for the first time ever. The process took about 10 minutes.
It was so easy that I walked my dad through it a couple days later. And let’s just say he’s not the most tech-savvy guy on planet.
• Unfortunately, I can’t personally walk you through the process…
But Teeka Tiwari can.
If you don’t know Teeka, you should get to know him.
He’s the editor of Palm Beach Confidential. And he’s one of the world’s top cryptocurrency analysts.
Now, I know a lot of people in our industry make this claim. But Teeka’s the real deal.
Just look at his track record. Since April 2016, Teeka’s told his readers about 26 crypto opportunities. The average gain of those recommendations is 1,021%.
His biggest winner was a cryptocurrency that soared 14,354% in six months. That’s enough to turn $1,000 into more than $143,000.
Those are life-changing gains. But don't worry if you haven’t bought bitcoin.
Teeka says we’re on the brink of a crypto boom that will “make even more everyday folks megamillionaires.”
New Orleans, LA
November 3, 2017
P.S. Last night, Teeka hosted a special cryptocurrency briefing called the $1 Million Dollar Bitcoin Giveaway. Over 250,000 people registered in advance to watch. That’s the most we’ve ever seen for a live event.
I understand that thousands of people who wanted to attend this special event couldn’t. So, the Palm Beach Research Group is making a replay available for a limited time.
If you missed last night’s showing, you can watch the replay—and still learn how to claim a portion of the $1 million in bitcoin—right here.
Today, a reader responds to Teeka’s essay: The Surprising “Secret” Behind This Couple’s Crypto Fortune…
I just read your email about the cryptocurrency “millennial millionaires.” I like the article that you have, as they are very relatable to me since I am about the same age and have been in the crypto game only a little shorter than them. While I don't consider myself a trader per se, as I am not looking to flip a coin in a very short time period (in crypto parlance I am more of a "holder"), I do like their opinion to not base more than 1%-3% of your capital into any one coin to diversify. For me, this is a small enough number that I can still cover a lot of ground while not missing out on quite a bit of potential profit.
I like hearing about cryptocurrency from this publication, because it signals further mainstream financial acceptance for cryptocurrency.
Remember, you can send your thoughts and personal experiences regarding cryptos (or any other sector you’re interested in) right here. We’d love to hear from you.