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Spread betting company Spreadex is set to offer Bitcoin as part of its range of markets.
The UK-based spread betting brokers are offering Bitcoin pricing based on the underlying futures price currently being offered by the CME Group’s weekday-only Bitcoin Futures market.
The news comes against the backdrop of Bitcoin’s bright start to 2018 as its value has risen back above the $16,000 mark. The cryptocurrency had a dramatic end of year as it hit a record high of nearly $20,000 in value before tumbling down nearly 30% to below $14,000 within the space of one week.
The volatility of the Bitcoin market, combined with the CME Bitcoin Futures market not being open on weekends, means that traders may not be able to achieve a closing out of their positions.
The volatility of such markets has seen industry experts predict that the uncertain nature of cryptocurrencies could actually boost the price of gold due to the market’s comparative stability. Further regulation of cryptocurrencies has also been identified as a potential trigger that would send investors back to gold.
Despite this unpredictability, there is evidence of financial spread betting brokers bolstering their share prices thanks to Bitcoin and other virtual currencies.
London-listed Plus500 outperformed its market expectations in the final quarter – allowing the company to expand into the Singapore market.
Despite the yo-yo value of Bitcoin, Plus500’s shares rose 130% in value over the last year – and this value had increased a further 25% within the first week of 2018.
Plus500 offers traders what is known as contracts for difference (CFDs). These arrangements mean that investors don’t ever own cryptocurrencies, but rather allows traders to gamble on the price. Spreadex’s Bitcoin trading is also based on the CFDs settlement approach.
Traders will be able to open a Bitcoin trading account with Spreadex from Monday 15th January 2018.
The spread betting company has been in operation since 1999 when it was formed by former city dealer Jonathan Hufford. The firm currently has over 60,000 account holders and offers spread betting across thousands of markets including indices, shares, interest rates and more.
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