Demand Pushes CME to add Options to Bitcoin Futures Offering


It would be hard to deny that the interest in investing in Bitcoin is waning, especially if one considers two traditional pioneers in the space, CME and CBOE. The two Chicago-based financial institutions opened the doors on Bitcoin futures trading for institutional investors, and are pushing out the boundaries.

The recent announcement has seenCME announce that, pending regulatory approval, it will be adding options to its Bitcoin Futures contracts in the first quarter of 2020. This is a big step in the right direction for the burgeoning Bitcoin market baying for more recognition from traditional money.

In fact, this also follows hot on the heels of CME looking to the regulators to let them double monthly Bitcoin futures open contracts for their clients, also based off increased demand from these new investors. 

Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, said of the addition of options:

“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.”

McCourt added that the new products are intended to help institutions and professional traders manage spot market Bitcoin exposure, as well as enable them to hedge Bitcoin futures positions in a regulated exchange environment.

It is not only CME that is leading the way as there has been a big advancement in Bitcoin futures recently with Bakkt finally coming to the party. Baakt’s highly regulated physical Bitcoin futures offering is due to open tomorrow with commentators, such as Tome Lee, predicting this will be a big boost to the market and help get Bitcoin onto the institutional map.

Having said that, on the other side of the fence, there is, of course, progress, but still a long road to travel. This is according to Jay Clayton, the chairman of the SEC, who does not see Bitcoin being welcomed into institutional trading spheres anytime soon. 

This is a bit of a blow to the continued growth of Bitcoin into the mainstream as investors continue to hope for the regulatory all-clear to launch Bitcoin ETFs. ETFs remain off the radar, yet still highly praised with the SEC being the gatekeeper to this product in the USA.

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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