Bitcoin Futures—What use are they?

By Shaen Corbet, Brian M. Lucey, Maurice Peat, Samuel A. Vigne. Economics Letters, 2018

231 citations recorded by the source corpus.

Early analysis of Bitcoin concluded that it did not meet the economic conditions to be classified as a currency. Since this conclusion, interest in Bitcoin has increased substantially. We investigate whether the introduction of futures trading in Bitcoin is able to resolve the issues that stopped Bitcoin from being considered a currency. Our analysis shows that spot volatility has increased following the appearance of futures contracts, that futures contracts are not an effective hedging instrument, and that price discovery is driven by uninformed investors in the spot market. We therefore argue that the conclusion that Bitcoin is a speculative asset rather than a currency is not altered by the introduction of futures trading.

Subfields: Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/59e94134f9c89dcc5ac37f1c10332f52c4a2f5b8

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Information Systems

Citations in the corpus

The impact of macroeconomic news on Bitcoin returns (2020, unknown): “Similar research has been conducted on the newly developed Bitcoin futures market (Corbet et al. [2018a]; Katsiampa et al. [2019b]; Katsiampa et al. [2019a]).”
High frequency volatility co-movements in cryptocurrency markets (2019, background): “Among few authors who have studied the interconnectedness of cryptocurrency markets are Fry and Cheah [2016], Cheah et al.”
How stable are stablecoins? (2021, unknown): “More recent studies that mention or analyze this issue are Harvey (2014), Baur, Hong, and Lee (2018), Corbet et al. (2018), Corbet et al. (2019), Smales (2019) and Shen, Urquhart, and Wang (2020) among others.”