Altcoin News: CME Group Prepares to Launch Bitcoin Options

September 5, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Chicago Mercantile Exchange Group (CME Group) is preparing to add another product to its line of Bitcoin derivatives, writes The Block, citing sources familiar with the situation. The exchange shared the specifications of option contracts with companies that provide marketing services.

CME was one of the first exchanges in the United States to launch regulated Bitcoin futures — this happened at the end of 2017. At the same time, Bitcoin options that allow traders to purchase an asset at a set price in the future are already on the market.

According to the documents that came to the disposal of The Block, CME Bitcoin options, like futures, will be calculated in fiat, and not in the cryptocurrency itself.

One source said: “If they have reached this point, then, I think, a launch is inevitable. A significant pent up demand for trading bitcoin options has formed. I know that there are other products, but nothing beats accessibility with CME.”

Futures contracts on Bitcoin of the Chicago Mercantile Exchange have been gaining popularity since the beginning of this year. The estimated nominal volume of open positions increased from less than $100 million in January 2018 to more than $200 million by August this year.

In July, it became known that CME will change the benchmark rate and index associated with the Ethereum.

Author: Marko Vidrih