Early Market Traction Volume Showed by CME Bitcoin

Zain Raza by Zain Raza - 02:39 PM Jan 14, 2020

CME’s options have been launched, and it could trigger an incursion of institutional speculators to crypto. On Jan. 13,2020, the CME launched its Bitcoin options contracts on the CME Globex platform. The purchase of one call option on bitcoin is the purchase that has been made. The strike prices of it ae $8,500, $9,500 and $10,000. 

Bitcoin derivative liquid was on the uphill throughout 2019, and it seems that it would continue to be the case in 2020. Most spectators still consider Futures and perpetual swap contacts as their mainstays. However, as the broader cryptocurrency sector is knocking on the door, regulations options like CME are expected to be on the rise as many sophisticated speculators jump to the forefront.

Deribit Leading The Way

Cryptocurrency exchange Deribit continues to topple the chart as the most liquid bitcoin option available. Boasting a value of over 80% in options value at the time of writing. The regulated exchanges are still the preferred choice of the spectators with colossal capital to deploy, giving it preference over CME and Bakkt. Chris Zuehlke, the global head of Cumberland, is showing faith in the institutionalisation of cryptocurrency derivatives. Cumberland is a subsidiary of DRW and makes CME’s bitcoin. He stated-

“As one of the largest liquidity providers in the space, we know there is a demand for more traditional risk management tools to support institutional entry into the space.”

CME and Bakkt are the only platforms, which offer liquidity and regulated products. Bakkt has been around for a month now, but they’ve been facing difficulties in their options market. Binance-based FTX , also announced the introduction of their crypto options market to keep[ up with the massive retail demand. Options offer more security and are secured with the risk management and hedged positions, which solidify their spot, and they become a preferred choice over traditional markets and individual traders.

About The Author
Zain Raza

Zain RazaZain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.


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