CME has no plan to launch deliverable Bitcoin futures

The exchange confirmed the launch of Bitcoin options.
Bitcoin futures with physical delivery are outside top priorities for the company.

Tanya Abrosimova Independent Analyst

The exchange has no intention to offer Bitcoin futures with physical delivery, following the launch of ICE-based Bakkt trading platform. The company does not see it as good business opportunity, the director of alternative investment products in CME Group Tim McCourt said this in an interview with Markets Media.

“Since we launched bitcoin futures in December 2017, the number one demand from customers has been for options on our futures,” McCourt commented.

CME Group settles Bitcoin futures in fiat; the same approach will be applied to the options. As McCourt noted, the company considers customer needs when developing new products, that'' why, there are no plans to launch deliverable bitcoin futures at this stage.

Since the launch of bitcoin futures, CME has attracted more than 3300 individual investors. This year, on average, the company processed about 7,000 contracts in the aggregate worth of 35,000 BTC.

“Building a new futures market is hard and we have been hugely successful with $1.3bn (€1.19bn) of bitcoin futures traded in May. We have already delivered on milestones and the introduction of options will help develop the ecosystem,” McCourt added.

According to McCourt, new options can use the existing technology, a matching engine, and clearing mechanisms. Currently, the exchange is to perform standard tests for the new instrument.

CME Group announced the decision to expand its set of cryptocurrency derivatives with Bitcoin options at the beginning of September.

Author

Tanya Abrosimova

Independent Analyst

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

Solana dips as hawkish Fed cuts dampen market sentiment

Solana (SOL) price is trading below $130 at the time of writing on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.

Pi Network Price Forecast: PI declines as core team offloads 2 million tokens

Pi Network (PI) edges lower by 3% at press time on Thursday, marking its fifth consecutive day of losses. A transfer of 2 million PI tokens from the liquidity reserve, part of the Pi core team wallets, bolsters the bearish sentiment.

Cardano Price Forecast: ADA flips bearish as derivatives markets flout network growth

Cardano (ADA) extends losses by 5% at press time on Thursday, following the 3% decline on the previous day and breaking the local resistance trendline. Derivatives data indicate a bearish shift in the narrative, as Open Interest and the number of active long positions decline.