The Chicago Mercantile Exchange will launch bitcoin options in the first quarter of 2020

According to Coindesk's September 22 report, the derivatives market Chicago Mercantile Exchange Group announced that it will offer options trading for Bitcoin futures contracts starting in the first quarter of next year.

Anonymous-bitcoin-cash-315117

(Source: pixabay)

The Chicago-based company launched Bitcoin futures as early as December 2017, while its rival Chicago Board Options Exchange (CBOE) also launched the product.

The Chicago Mercantile Exchange said in a statement on Friday that its purpose in launching Bitcoin options is to provide customers with "extra tools for precise hedging and trading." Currently, the product is awaiting review by regulators.

Tim McCourt, global head of stock index and alternative investment products at the Chicago Mercantile Exchange, said:

Based on growing customer demand and strong momentum in the Bitcoin futures market, we believe that the launch of Bitcoin options will provide our customers with additional flexibility to trade and hedge their bitcoin price risk. At the same time, these new products are designed to help institutional and professional traders manage bitcoin spot market exposures and hedge against bitcoin futures positions in regulated exchanges.

The company said in detail that since its launch in 2017, it has completed 20 “successful” futures settlements, and more than 3,300 individual accounts are trading these contracts. The company added that the average daily trading volume of bitcoin futures contracts to the Commodity Exchange is close to 7,000.

In March 2019, the Chicago Board Options Exchange suddenly changed its strategy and stopped trading Bitcoin futures products. This makes the Chicago Mercantile Exchange the only bitcoin futures provider in the United States.

However, the Chicago Mercantile Exchange is about to usher in a new competitor, and Intercontinental Exchange and its subsidiary Bakkt will start rolling out a new futures product. Unlike the cash contract of the Chicago Mercantile Exchange, Intercontinental Exchange will provide physical settlement of bitcoin futures products, which means customers will receive actual bitcoin instead of equivalent cash.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

What Bitcoin will look like in 10 years, Satoshi Nakamoto says | Bitcoin Secret History

Different from the direction described by Satoshi Nakamoto in the white paper "Peer-to-Peer Electronic Cash Syst...

Blockchain

US lawmakers: If Facebook can use Bitcoin directly, there will not be so much trouble.

US Congressman Warren Davidson said that Facebook’s direct addition of Bitcoin to the Calibra wallet would be ...

Blockchain

Double eleven shopping to send bitcoin, this app did

Bitcoin startup Lolli announced that the company's users who shop on Alibaba can get a 5% bitcoin as a reward. L...

Blockchain

The mysterious website said that after 11 days, the identity of Nakamoto was revealed. Is the marketing routine really unexpected?

Where is Nakamoto? Henry Ford is the father of the automotive industry, and Steve Jobs has created a culture that is ...

Blockchain

Analyst: The probability of breaking $20,000 at the end of Bitcoin is 7%, and $10,000 is becoming the new bottom.

With the recent weakening of the market value of the highest cryptocurrency bitcoin market, some analysts said that t...

Market

July 18th madman market analysis: the currency circle is still in the state of survival, brave people eat big meat industry

Market analysis Bitcoin: Libra’s business has come to an end, and the market’s sentiment has been relea...