iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Howard Davies Warns CME Against Launching Bitcoin Futures, Says ‘Irrational Exuberance’ is at Play

I’ve never seen an older man in my entire life. Here’s a Wall Street legend, founded FSA, telling Tom Keen from Bloomberg that Bitcoin is, essentially, nuts. He cites a one sided market, with no sellers, equating it to ‘irrational exuberance’, borrowing a phrase from Alan Greenspan. Moreover, he warned the CME against launching BTC futures contracts, saying he has no idea how to price such an instrument, implying their reputation could be damaged by the product.

“This is irrational exuberance,” Royal Bank of Scotland Chairman Howard John Davies said in an interview on Bloomberg TV on Thursday. “This is a very, very unusual market, that shows we’re not in a normal two-way trading market.”

On a related note, the two ETFs that have exposure to Bitcoin have performed best this year. GBTC is higher by 1,580% this year and actively managed ARKK is higher by 70% — because its largest holding is GBTC. Go figure.

Here is ARKK’s other holdings.

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10 comments

  1. roundwego

    The pseudo currency parabolic run is sign that this market is gonna blow.

    http://www.zerohedge.com/news/2017-12-07/bill-gross-financial-system-we-know-it-can-be-risk

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  2. dan dangerdance

    At least Davies likes Blockchain, except he didn’t explain how there can be Blockchain without Bitcoin. Right, he just meant Bitcoin has run up too fast, I get that. The oldest man I’ve ever seen still functioning on Wall Street was that guy Howard somebody on Bloomberg yesterday.

    Meanwhile Mr. Fly I apologise for warning you off BTC some days back…you couldve made 50% by now. Nevertheless, Im warning you off again.

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  3. sarcrilege

    This guy Davies is way to old to understand how great btc is if he just stopped making sense and muddying the valuation issue with facts.

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  4. roundwego

    So trump is backin the Jews instead of Arab’s unlike obama. But this Jerusalem thing is just a cry for war. Why the fuck did trump do this now.

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  5. Angel of Death

    Was reading that IB is not allowing shorts in BTC futures. You’d have to have big cojones to short this. I expect many traders and possibly even a firm or two to blow up fromrhe volatility. I sold all my BTC a few thousand points ago. Lol. Waiting for the next crash to evaluate another foray into these shit coins.

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