December 5, 2023

CME announces tentative launch date for Bitcoin options

The Chicago Mercantile Exchange (CME) announced that the launch of Bitcoin options contracts is scheduled for January 132020 year.

“We see that interest in cryptocurrencies and demand forrisk management tools are constantly growing, so we will launch our tool soon, ”the exchange said, adding that the product is still awaiting regulatory approval.

CME said that one futures contract forBitcoin will correspond to 5 BTC in US dollars, and the block will contain at least five contracts. Options will allow traders to buy and sell futures contracts at a specific price at the appointed time.

“After the exercise of an option, positions inbasic futures contract with cash settlement. Money options automatically become expiring futures. They are calculated at the base CME rate at 16:00 London time on the last Friday of the contract month. ”

Exchange expects upcoming optionsBitcoin will be in high demand among Asian traders and miners. In October, CME announced that futures were gaining popularity among institutional investors and introduced specifications for future Bitcoin options.