4 months ago
CME Group announced connected Jan. 29 that it would present options connected its Bitcoin (BTC) Friday futures. The caller contracts volition motorboat connected Feb. 24.
According to the announcement, the contracts are CME’s archetypal financially settled crypto options product, though they are inactive pending regulatory approval.
Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, stated that the merchandise aims to supply traders with tools to negociate short-term Bitcoin terms risk. He added:
“Building connected the occurrence of our Bitcoin Friday futures, the smaller size of these contracts, on with regular expiries, connection marketplace participants a capital-efficient toolset to efficaciously set their bitcoin exposure.”
Unlike accepted play options, these contracts volition diagnostic expiries each concern day, Monday done Friday, allowing for much precise hazard management.
The announcement besides highlighted that the caller options’ fiscal colony adds convenience for traders seeking to hedge Bitcoin terms movements without the complexities of carnal settlement.
Introducing options connected Bitcoin Friday futures volition complement CME’s existing suite of physically settled crypto derivatives, including Bitcoin, Ethereum (ETH), Micro Bitcoin, and Micro Ether futures.
Since their debut connected Sept. 29, Bitcoin Friday futures person rapidly go 1 of CME Group’s astir palmy crypto merchandise launches. The institution shared that much than 775,000 contracts were traded, with an mean regular measurement of 9,700. Notably, 44% of contracts were traded during non-US hours.
Demand for crypto hazard absorption tools
The motorboat comes astatine a clip erstwhile organization involvement successful Bitcoin is high. Private companies are adding BTC to their treasuries, and adjacent countries—such arsenic the US, Brazil, Switzerland, and the Czech Republic—are considering it for their reserves.
Joshua Lim, Global Co-head of Markets astatine FalconX, addressed this movement:
“Given the expanding density of tradable catalysts successful crypto, CME Group’s caller enactment suite connected Bitcoin Friday futures provides the granularity that marketplace participants request for hedging and expressing nuanced views connected Bitcoin.”
Galaxy Global Head of Trading Jason Urban echoed the sentiment, stating that the options supply a “flexible and cost-effective way” for traders to optimize hazard absorption portion responding to shifting marketplace conditions.
The station CME Group to present options connected Bitcoin Friday futures starting Feb. 24 appeared archetypal connected CryptoSlate.
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