One of the biggest investment stories over recent months was the launch of bitcoin futures, which essentially offer exposure to the cryptocurrency, without actually having to own it.
The launch has garnered a lot of criticism, with concerns revolving around the instability (or lack of regulation) of bitcoin exchanges, and the fear that encouraging more people to enter the market at this point of time could exacerbate an already volatile asset class.
Theres also the risk that the bitcoin market could collapse if a stampede of futures traders all sell their contracts at once.
Bitcoin futures got off to a good start immediately after their debut last month. But theyve been on a downward spiral since the beginning of 2018, and now sit at the $14,000 mark, down from an opening price of $15,000 at launch, meaning many futures investors are set to face large losses when the monthly contracts expire tomorrow.
If anything, this episode just draws attention to the volatile nature of the cryptocurrency.
Despite the drop in price, its likely we could see the creation of more futures markets going forward, as demand for crypto continues to grow