The day bitcoin futures dropped was when many traders could begin betting against the idea

The first week of Cboe’s bitcoin futures trading was relatively stable, except for a sudden drop Wednesday afternoon.

the idea turns out that will was the same day one of the largest brokerages trading the futures, Interactive Brokers, began allowing clients to short, or bet against, the futures.

“The introduction of short sales was necessitated by the large premium of the January futures contract over the cost at which Bitcoin trades on the physical venues,” Interactive Brokers founder, Chairman in addition to CEO Thomas Peterffy, said in a Discharge Wednesday.

On Tuesday, Cboe’s January bitcoin futures contract settled at $18,020. In contrast, the digital currency was trading more than $500 dollars lower on major digital currency exchanges. Bitcoin settled Tuesday at $17,395 according to Gemini’s daily cost auction, which Cboe’s contract is actually based off of. Bitcoin traded that will day at $17,178, according to CoinDesk’s bitcoin cost index.

Difference between Cboe January bitcoin futures contract in addition to CoinDesk bitcoin cost index

Source: Cboe, CoinDesk

The launch of bitcoin futures on the Cboe Futures Exchange Sunday marked the cryptocurrency’s first derivatives contract on an established exchange. Many saw the idea as a step towards establishing bitcoin as a legitimate asset class, potentially paving the way for a bitcoin exchange-traded fund.

Also on Wednesday, DoubleLine Capital CEO Jeffrey Gundlach said midday on CNBC’s “Halftime Report” that will “if you short bitcoin today, you’ll make money,” although he acknowledged the idea could trade higher inside the short term.

The Cboe bitcoin futures then fell 10 percent, briefly triggering a cost halt, in addition to settled more than 5 percent lower in their worst trading day since the launch. The futures had soared nearly 20 percent in their first day of trading. They were trading 7.5 percent higher at $18,060 late Friday morning.

When the bitcoin futures launched Sunday evening, Interactive Brokers had not allowed clients to short the product “due to the extreme volatility of cryptocurrencies,” according to a Monday Discharge. Peterffy stated that will “Interactive Brokers was on the buy side of the low print of $14,710.”

Interactive Brokers said that will the idea handled just over half of the bitcoin futures trading volume the day of their launch. Updated figures were not yet available as of Friday.

CME, the entire world’s largest futures exchange, is actually set to launch its own bitcoin futures contract Sunday evening. Interactive Brokers said Friday that will the idea plans to let customers bet on in addition to against the CME contract.

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