The CME Group is going to be in the first quarter of 2020, the so-called options on bitcoin futures markets have to offer. That’s what makes the derivatenbeurs of Chicago announced today in a press release.
Contents
Bitcoin options CME
There were already rumors that the Chicago Mercantile Exchange (CME), with a new bitcoin product on the court, it would come out. The Us regulator CFTC has yet to approve the proposal.
An option allows a trader to speculate on an increase or decrease in price of bitcoin. Each option contract will have a value. In practice, it is running CME over 7,000 futures contracts on a daily basis in volume.
This corresponds to a daily volume of approx. $370 million).
In this case, it has been in the news, there are options on the existing bitcoin futures, CME, since by the end of 2017 to offer. Of the underlying futures contracts provide for the option of the required liquidity.
The increasing demand
According to the CME, the demand for trading products in the cryptomarkt to. An option, in addition to a bitcoin futures contract will lead to more flexibility for the investors, said Tim McCourt, at the CME is responsible for the research.a. the cryptomarkt.
“This product is designed for institutions and professional traders more exposure to the spot market. The parties, their financial risk-hedging an option on a futures contract in a regulated beursomgeving’.
Bitcoin futures contracts
Competitors such as BitMEX, and Binance, are not subject to regulation in the united states in the provision of futures and options. By the end of 2017, at the height of the market, the CME was on its futures-based product line has been launched.
Meanwhile, it took the stock market it is one of the volumerecord to each other. Competitor, the CBOE, also of Chicago, was stopped by the bitcoin futures contracts.
On the other hand, open Bakkt on Monday and open its doors to institutional investors and accredited investors. The difference with the CME: Bakkt enters into a contract in bitcoin and not dollars.
Derivative instruments such as futures and options are geared towards professional traders and not beginners, as the risks are simply too great.
Also read: Bitcoin Futures on CME are breaking records daily trading volume of $370 million
Thank you for signing up!