CME Group are to launch BTC options!

The giant exchange CME Group has announced that it will launch bitcoin options contracts in Q1 2020.

This is massive news as it will bring a mass new market to the crypto community. 

They are not the first company to bring in this product as Deribit from Amsterdam launched options a while back but it is still a big step in the right direction.

The product is still under review and I can understand why. Bitcoin is a volatile product and adjusting for options spreads and premiums can be a hard task.

Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. said:

"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," 

So there you have it McCourt seems to feel like the market place needs this.

"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."

Although this was always the main point of futures and options many traders use the instruments to speculate. I for one cannot wait for the product to be released and there will be lots of questions about the premiums, spreads and analytics behind the product. Exciting times ahead.