The renowned derivatives marketplace ‘CME Group’ has made an announcement to unveil options on its Bitcoin futures contracts by Q1 of 2020.
As the total number of daily transactions of the underlying instrument ‘Bitcoin’ has improved, so have the instruments traded in it.
Well, CME Group has the extensive derivatives mechanism through which clients can effectively hedge or speculate via benchmark options on futures across every investable asset class, with the average daily volume of 4.3 million in 2019 to date.
The company is now intending to improvise hedging and trading arrangements for their clients with such a derivatives instrument (Bitcoin options).
The CME Group Global Head of Equity Index and Alternative Investment Products, Mr.Tim McCourt, said that"Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk, these new products are designed to help institutions and professional traders to manage spot market bitcoin exposure, as well as hedge Bitcoin futures positions in a regulated exchange environment."
Crypto trading volume has considerably surged in the recent past, and mounting interests for digital currencies. We kept reiterating that Bitcoin derivatives are featuring to become crypto-avenue's "buzz word" of late, especially in last two-three months as trading on CME, which is the only regulated bitcoin futures destination, has hit all-time-high in the recent months running (precisely, $4,88 bln and $6.6 bln in April and May months respectively).
While the open interest for the bitcoin (BTC) futures at Chicago Mercantile Exchange’s (CME) is reportedly observed at an all-time high.
Since December 2017, the launch of CME Bitcoin futures, 20 actively traded futures expiration settlements, and more than 3,300 individual accounts have traded the product. Approximately about 7,000 CME Bitcoin futures contracts (equivalent to about 35,000 bitcoin) have traded YTD on average each day. Simultaneously, the institutional interest is also increasing which is in sync with the mounting open interest.


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