The giant derivatives exchange group has <a href="https://www.prnewswire.com/news-releases/cme-group-to-launch-bitcoin-options-in-q1-2020-300922141.html">announced</a> its plan to launch Bitcoin options trading in early 2020. The launch is subject to regulatory approval. The exchange has offered Bitcoin features since December 2017.

However, the announcement has come at an interesting time. CME has a new competitor in town in the name of Bakkt, created by NYSE owner ICE. Bakkt will release Bitcoin futures which settle through physical delivery of Bitcoin. Unlike Bakkt, CME settles through cash supplements. <a href="https://www.cryptoknowmics.com/crypto/final-preparation-to-bakkt-bitcoin-launch-starts-ethereum-follows-next/">Bakkt</a> futures launches on Sunday 22<sup>nd</sup> September.

According to Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products:

<strong><em>“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their Bitcoin price risk. These new products are designed to help institutions and professional traders to manage spot market Bitcoin exposure, as well as hedge Bitcoin futures positions in a regulated exchange environment.”</em></strong>

Moreover, as per the CME, there were a record 56 large open interest holders in July. Apparently, this represents institutional interest. The company claims the daily average volume to be equivalent to 35,000 Bitcoin. Year to year figures have almost doubled since 2018.

In addition, CME sees options as the potential to save on margins through margin offsets.
<h2>CME Awaits Options Regulatory Approval</h2>
Regardless, it remains to be seen whether the Bitcoin options receives regulatory approval. Naturally options are volatile because they are more based on price movements rather than price themselves. Buying options on a product having volatile prices is very risky.

In conclusion, CME currently offers Bitcoin futures contracts launched back in 2017. Ever since the launch, almost 7,000 CME Bitcoin futures contracts (equivalent to about 35,000 Bitcoin) have been traded on average daily. According to the company, over 3,300 individual accounts have traded the product since its inception.

CME Group Will Launch Bitcoin Options in Q1 2020

The giant derivatives exchange group has announced its plan to launch Bitcoin options trading in early 2020. The launch is subject to regulatory....%

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CME Group Will Launch Bitcoin Options in Q1 2020

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