Bitcoin Options coming in Q1 2020
The Derivatives marketplace CME is preparing to bring another trading option for the premier digital asset
It just seems that Cryptos can’t decide which price direction to take. While the earlier rally was mostly driven by Bitcoin, lately the premier digital coin has been squeezed into a really tight range which it has been holding for the past two weeks. Alt. coins, on the other hand, which have lagged Bitcoin in the gains & beaten it in losses are finally beginning to show some lease of life.
Bitcoin ETF had been stealing the limelight as the regulators struggled to come around the idea. The U.S SEC especially had delayed the decision twice this year before the VanEck and SolidX Bitcoin ETF proposal was withdrawn a few days ago. For some, this might be a setback, I think the traders had already realized that it is not going to be approved any time soon. That’s why the decision to withdraw the ETF proposal didn’t draw many reactions from the market.
Despite the news, the Crypto adoption in tradeable markets continues to march forward. The biggest example is the CME (Chicago Mercantile Exchange) led Bitcoin futures product which was launched in Dec. 2017. The Bitcoin Futures volume peaked earlier this summer with the bull run (chart below). Although the market has cooled off a little ever since it remains in healthy shape.
The World’s most diverse derivatives marketplace has now announced the launching of its Bitcoin futures contracts in Q1 2020, pending regulatory review. The move has come due to the increased client demand, healthier adoption & robust growth of the Bitcoin futures market. The Bitcoin options would provide customers with the additional flexibility of managing risk and building trading strategies.
According to the Press release, rapidly growing CME Bitcoin futures have seen 20 successful futures expiration settlements with more than 3,300 individual accounts trading the product. 2019 alone has seen an average of 7,000 CME Bitcoin futures contracts (35,000 Bitcoin) traded every day.
Combine this with the launch of Bakkt Bitcoin's physical future launch, I would say, digital assets are making headway in the capital markets of the World. If you are excited about the upcoming Bitcoin Options launch, you can visit the website for more info.
Update (11/12/2019): According to the latest press release, CME has announced that the Bitcoin futures contracts will be available for trading starting Jan. 13, 2020, pending regulatory review.