CME Group to Launch Bitcoin Options in Early 2020


Over the years, cryptocurrency has developed at a remarkable pace, and an investment instrument like Bitcoin options would have been unthinkable even a few years ago. However, the march of Bitcoin, blockchain, and cryptocurrencies has been relentless. Hence, it is not really a surprise that options are at last going to be launched for the biggest cryptocurrency in the world by market cap—and by CME Group no less.

More Leverage for Crypto Traders

In a new development, the Chicago Mercantile Exchange (CME Group) has announced that options are now going to be made available to traders as part of the broad category of products that come under Bitcoin futures contracts. The options are going to be available by the first quarter of next year, provided it is cleared by the relevant regulators.

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The introduction of Bitcoin options is primarily due to the fact that it allows investors to create a hedge when it comes to their trading strategies, and it could well prove to be a superb addition. The Chief of Equity Index and Alternative Investment Products at CME Global spoke about the development: “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.”

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It is a well-known fact that Bitcoin can be a volatile asset from time to time and so the risks for those trading in futures contracts can be quite high. In such a situation, it is only natural for an exchange to provide options as well, so that the risks can be managed better.

The emergence of a wider variety of products is also going to encourage new investors to come into the picture and further strengthen the cryptocurrency ecosystem as a whole. There has been demand for more Bitcoin futures for some time now, and it seems that traders are all set to get their wish next year.

Featured image: DepositPhotos © grejak

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