New York swap exchange LedgerX offered long-term options for bitcoins at a price of $10,000 and expiration on December 28, 2018. This is reported by the CoinDesk.
Under the terms of the deal, the buyer has the right to buy bitcoin at a price of $10,000 at that date, or almost a 30 percent premium on today's price.
In an interview, LedgerX CEO Paul Chou said that such investments speak of the "growing up" of the crypto-currency market and will attract even more institutional investors.
There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018.
Two large investors immediately became interested in new options a day after the launch, which surprised even the CEO of LedgerX.
Under the terms, the buyer agreed to a price of $2,250.25 for the trade, meaning the seller collects that money if the price is less that $10,000 by the end of next year, and the buyer gets to purchase bitcoin at the strike price if it is higher.
Unlike a futures swap however, the buyer is not obliged to purchase the asset.
If the price goes to zero, you don't have to pay $10,000 for it. But if a year from now it's at $20,000, then you can exercise your options.
Based on LedgerX's own researches (made using the Nobel-prize winning Black-Scholes financial markets model), the startup believes there is a 25 percent chance that bitcoin will reach that level in the allotted time.