CME Group expects Asia to show good demand for new options

Posted 10 October, 2019

Chicago Mercantile Exchange forecasts healthy demand for its upcoming bitcoin-futures options in Asia. 

Tim McCourt, CME Group’s global head of equity products and alternative investments, told South China Morning Post that the announced options would become as popular as bitcoin futures. In particular, almost a half of futures trading volumes covered by European and Asian traders.

For reference, the new product is expected in Q1 2020, as the company spokesperson stated earlier.

According to the recently released data, futures sales more than doubled in Q3 driven by stronger bitcoin price in 2019.

The representative of CME Group stated that bitcoin options may enable traders and miners to get extra instruments for risk hedging.

“While futures give you a one-for-one exposure, whereby the movement of the underlying bitcoin translates directly to a specific dollar value per contract, an option gives you varying strike-price levels and can give you either downside protection, or upside exposure at a fraction of the underlying [assets’s] price,” explained McCourt in the interview.

Unlike its rival ICE's Bakkt, CME Group stated in September that the company had not planned the launch of physically-settled bitcoin futures.

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