CME Group has announced plans to launch options on its bitcoin futures contracts in Q1 2020, pending regulatory review.
“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,” says Tim McCourt, CME’s global head of equity index and alternative investment products. “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 says that, since launching bitcoin futures in December 2017, there have been 20 expiration settlements on these contracts and more than 3,300 individual accounts have traded the product. Year-to-date, nearly 7,000 CME bitcoin futures contracts – equivalent to about 35,000 bitcoin – have traded on average each day.