Chicago Mercantile Exchange, Group has announced that it will launch options on its Bitcoin futures contracts, that is pending regulatory review, in Q1 2020.
“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,”
said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.
By offering Bitcoin options, the company is providing its clients with additional tools for trading and hedging.
“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.”
CME first launched Bitcoin futures in December 2017, during the last bull run, and since then it had 20 successful futures expiration and over 3,300 individual accounts that have traded the product.
Nearly 7,000 Bitcoin futures contracts have traded on average each day on CME.
However, August didn’t see much activity and this week recorded the
“lowest volumes in 4 months,”
as reported by Skew markets.
Institutional interest meanwhile, continues to build with the number of large open interest holders reaching a record in July.