Bitcoin

Investors 'haven't missed the train' on bitcoin yet, but it could be a wild ride, analyst says

Key Points
  • It isn't too late for investors to hop into cryptocurrencies after bitcoin futures launched on the Cboe over the weekend, BK Capital Management's Brian Kelly says.
  • "It's so early," he says. "You haven't missed the train yet."
Bitcoin futures trading launches with big rally
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Bitcoin futures trading launches with big rally

It isn't too late for investors to hop into cryptocurrencies after the bitcoin futures launch on the Cboe, an analyst told CNBC on Monday.

"Relative to assets, you're talking $100 trillion in investable assets," said Brian Kelly, founder of BK Capital Management. "All you would need is 1 percent of those assets to be allocated to this and you've got a double in bitcoin."

"It's so early," Kelly added in a "Squawk Box" interview. "You haven't missed the train yet."

Bitcoin futures, trading under the XBT ticker symbol, debuted on the Cboe futures exchange on Sunday night. The futures price climbed 10 percent in the first two hours and triggered at least two trading halts due to rapid price gains. The new futures eased back on Monday from its initial surge.

For the time being, the digital currency will be "incredibly inefficient" but will eventually mature. Kelly said. "Bitcoin itself has been around for eight or nine years now," he said. "The trading markets are really just maturing. It'll get more complicated. More strategies will come in."

"But clients calling you saying, "Hey, how do I get in?' To me that's a bullish sign," he added.

Bitcoin, which has surged more than 1,500 percent this year, has some market participants warning of a bubble. Critics, including Jamie Dimon, have doubted the legitimacy of bitcoin. But on Friday, the JPMorgan Chase CEO seemed to be softening his tone on cryptocurrencies. He still declared that he remains "highly skeptical."

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