Site Team

1 month ago

CME Group, which launched Bitcoin Futures about two years ago, is once again focusing on the king of the cryptocurrency market, Bitcoin (BTC). According to recent reports, CME Group will launch Bitcoin Option in Q1 2020. But, is that the right solution or not?

CME Group Will Launch Bitcoin Options In Q1 2020

Derivative contracts for cryptocurrencies seem to be popular now, and CME Group showed interest in a new product focused on Bitcoin (BTC). CME commenced a campaign to build a robust base for its upcoming series of derivatives products that increased the interest institutional investors into the cryptocurrency market.

According to Tim McCourt, the head of CME Group, “increasing client demand and robust growth” within a regulated cryptocurrency market the new products would bring flexibility for Bitcoin (BTC) trading.

“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,” Tim McCourt added.

CME Group plans to roll out Bitcoin Options in Q1 2020. That's an achievable timeframe in the current market conditions.

Bitcoin (BTC) Surge And Lack Of Competition Helped CME Group

The volume of Bitcoin Futures on the CME Group platform experienced a considerable boost between April and June of this year. Mostly, that was thanks to the Bitcoin (BTC) price surge and the lack of potent competition for CME.

Starting on April 2nd, Bitcoin (BTC) witnessed a significant bullish trend, surging from about $4,000 to $13,500 in June.

While the ascending in the BTC price was due to many reasons, including higher adoption and fewer regulatory changes, for CME Group, the lack of a strong competitor was crucial.

However, the Bitcoin Options might not be as powerful as Bitcoin Futures have been for Bitcoin (BTC) when the crypto massively surged in December 2017. For example, CME Group's Bitcoin Features expiry of August did not change much in the Bitcoin market. Accordingly, Bitcoin Features and Options derivates seem “old.”

People Mentioned

Justin Sun

Founder of TRON (TRX)

Coins Mentioned

Justin Sun

Founder of TRON (TRX)

Companies Mentioned

Justin Sun

Founder of TRON (TRX)

Justin Sun

Founder of TRON (TRX)

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