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RE: Why the CME (Chicago Mercantile Exchange) offering Bitcoin futures will push the price up
Some excellent points made.
I think one of the most basic points is that, depending upon the derivative, there is someone on the opposite side of the trade. So to trade against an asset with an option, as an example, someone on the other side needs to asset to put the option out there. I know futures are a bit different but are options on bitcoin really that far away. We know Wall Street, once they start down the derivative rabbit hole, they keep going.
We need them to start creating steem deirvatives. :)
read the release from the CME and could see if the futures would be matched by other traders or the exchange, shouldn't matter much either way expect a trader is more likely to overextend.
I hadn't considered options, but that would allow someone to limit their risk and short with less risk, but I bet those options will be price as someone needs to take that risk.