Chicago Mercantile exchange expects high demand from Asian capturadora and miners planned to launch options on bitcoin futures. About managing Director Tim McCourt said in an interview with South China Morning Post.
The exchange intends to launch a new product in the first quarter of 2020. According to McCourt, the option contracts will be as popular as futures on bitcoin. Up to 50% of the trading volume last provide Asian and European traders.
The exchange said that the growth of bitcoin prices this year, the volume of futures trading in the third quarter, 61% higher than the same period last year.
Despite the pullback in bitcoin prices, customer interest in the CME futures Bitcoin remained strong during Q3 with daily OI of over 4.6 K contracts, up 61% vs Q3 2018. https://t.co/MiMqZ52JmS pic.twitter.com/WiQBA0mK0o
— CMEGroup (@CMEGroup) October 9, 2019
Regarding options on bitcoin McCourt said that they will provide traders and the miners more tools for hedging price risks.
«While futures convey the impact of one-to-one, resulting in the movement of bitcoin as the underlying asset, directly translates into the dollar value of the contract, the option gives you different levels the strike price and can provide any protection from falling or from increasing the base rates,» added McCourt.
Last month rival CME Group, Intercontinental Exchange, launched on the platform Bakkt trading deliverable futures on bitcoin. Managing Director of CME Group said that the launch of such a product is not included in the exchange’s plans.
Recall that on may 13 CME recorded a record daily trading volume of bitcoin-futures — 33 677 contracts worth $1.3 billion.