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CME Group To Offer “Options” On Bitcoin Futures in Early 2020

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CME Group is all set to launch options on Bitcoin Futures in early 2020. The move has been undertaken in response to growing customers’ demands for managing Bitcoin Exposure. 

Bitcoin Traders In For Huge Benefits

Per a recent update on the official site of the Chicago Mercantile Exchange(CME) Group, it is all set to roll out options on Bitcoin Futures, post regulatory approval in early 2020. 

The update mentions that options on Bitcoin Futures will offer Bitcoin traders a good opportunity to save on margins through margin offsets. Further, the CME CF Bitcoin Reference Rate ( BRR) will be calculated on the basis of daily trading volume of major Bitcoin exchanges and trading platforms. 

The options will further help traders mitigate possible risks of counterparty default with a central clearing. Moreover, this will expand choices for traders and help them in managing risk and building strategies, as it will support flexible trading. 

CME Futures Record A 4 – Month Low

While options on Bitcoin Futures will be a piece of good news for traders, the present scenario doesn’t seem very beneficial for crypto holders. Yesterday, Chicago Mercantile Exchange (CME) futures is said to have recorded a 4-month low amid crashing BTC price. 

There has been a significant fall in open interest. A devaluation in open interest was seen, as the value dropped from $384 million to the current value of $218. Further, the daily volume marked a reduction from its maximum value of $1.726 billion to its current value at $86 million.

Source- Skew Markets

Also, about a week ago, in their bid to maintain trading volume, CME group was reported to have opened the gates for traders. This was to enable them to hold a higher number of open Bitcoin (BTC) contracts as they doubled their Bitcoin(BTC) futures contracts limits. 

Will CME Futures come out of their 4- month low with the ongoing developments? Let us know, what you think?

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