The structuring of financial products around Bitcoin continues to pick up speed. In addition to the launch of Bakkt next Monday and the never-ending history around the Bitcoin ETF , the CME Group is continuing to build on its Bitcoin futures in Q1 2020. By the beginning of 2020, bitcoin derivatives, more specifically bitcoin options, are to be launched on the market.
Bitcoin Options Follow on Bitcoin Futures - Another Step Towards "Big Money"?
Chicago-based CME Group first launched its Bitcoin Futures product in December 2017, coinciding with its rival Windy City, the Chicago Board Options Exchange (CBOE). However, they quickly resumed their business in March 2018, leaving CME alone today. This will change with the Bakkt Bitcoin Futures on Monday though.
Now another announcement from the group follows that they are planning to roll out Bitcoin options, targeting Q1 2020. According to Coindesk, the CME Group wants to provide its customers with " additional tools for Precision Hedging and Trading ".
Tim McCourt, CME Group's Global Head of Equity Index and Alternative Investment Products, said:
"Due to increasing customer demand and robust growth in our Bitcoin futures markets, we believe that the introduction of options will provide our clients with additional flexibility in trading and hedging their Bitcoin price risk. These new products are designed to help institutions and professional traders manage bitcoin exposures on the spot market and hedge Bitcoin futures positions in a regulated market environment. "
Financial Products: Futures, Options and finally ETFs?
What sounds so complicated is simply summarized: The CME Group is taking the next logical step in the 1 × 1 of financial products and wants to give the customers more flexibility and hedging opportunities when trading Bitcoin with the Bitcoin options.
Whether the ETFs will finally be able to celebrate their debut in 2020 is entirely up to the SEC, which seems to have a long way to go for Bitcoin and its regulation. This is how the carousel around VanEck, SolidX and Bitwise continues to turn. The Bitcoin options will certainly give another important impetus in the right direction.
Source of info cryptomonday.de.