CME Group announcement On January 29, he would introduce options on his term contracts on Bitcoin (BTC). The new contracts will be launched on February 24.
According to the announcement, contracts are the first product of crypto options financially set by CME, although they are still pending regulatory approval.
Giovanni Vicioso, CME Group Global, manager of cryptocurrency products, said the product aims to provide traders with tools to manage the price of short-term bitcoin price. He added:
“Based on the success of our term contracts on Bitcoin Friday, the smallest size of these contracts, as well as daily expirations, offer market players a set of capital economy tools to effectively adjust their exposure to bitcoin . “
Unlike traditional weekly options, these contracts will offer expirations every working day, from Monday to Friday, allowing more precise risk management.
The announcement also stressed that the financial regulations for new options add convenience to traders seeking to cover the movements of Bitcoin prices without the complexities of the physical regulations.
The introduction of options on term contracts on Bitcoin Friday will complete the existing CME suite of physically adjusted cryptographic derivatives, including Bitcoin, Ethereum (ETH), micro bitcoin and future micro ether.
Since their beginnings on September 29, Bitcoin Friday Futures has quickly become one of the most successful crypto product launches in the CME group. The company shared that more than 775,000 contracts were negotiated, with an average daily volume of 9,700. In particular, 44% of the contracts were negotiated during the non-United States.
Request for crypto risk management tools
The launch comes at a time when the institutional interest in Bitcoin is high. Private companies add BTC to their treasury bills, and even to countries, such as The United States,, Brazil,, Swissand the Czech Republic—A will consider it for their reserves.
Joshua Lim, co-chief of the Falconx markets, addressed this movement:
“Given the growing density of negotiable catalysts in the crypto, the new sequence of CME group options on Bitcoin Friday Futures provides granularity that market players need for the coverage and expression of nuanced views on bitcoin . “
Galaxy Global, business manager, Jason Urban has echoed the feeling, declaring that the options offer a “flexible and profitable means” for merchants to optimize risk management while meeting market conditions.
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