The Chicago Mercantile Exchange expects strong demand from Asian crypto traders and miners forBitcoin futures options to be launched. The managing director of the company, Tim McCourt, said this in an interview with the South China Morning Post.
Exchange intends to launch a new product in Iquarter of 2020. According to McCourt, option contracts will be as popular as bitcoin futures. Up to 50% of the trading volume is provided last by Asian and European traders.
On the eve, the exchange said that due to the increase in bitcoin prices this year, the volume of futures trading in the III quarter exceeded the figure for the same period last year by 61%.
Regarding Bitcoin options, McCourt noted that they will provide traders and miners with additional tools to hedge price risks.
“While futures convey impact“One to one”, as a result of which the movement of bitcoin as a basic asset is directly translated into the dollar value of the contract, the option gives you different strike price levels and can provide either protection against a fall or from an increase in the base price ”- added McCourt.
Last month rival CME Group, a companyThe Intercontinental Exchange, launched on the Bakkt platform trading in deliverable bitcoin futures. The managing director of CME Group said that the launch of such a product is not included in the plans of the exchange.
Recall that on May 13, CME recorded a record daily trading volume of bitcoin futures - 33,677 contracts worth $ 1.3 billion.
Read this:
CME Group will launch options based on bitcoin futures
In the first week, the trading volume of Bakkt bitcoin futures amounted to only $ 5.2 million
BITCOIN Warning A duplicate pattern has been detected before the Bitcoin price moves. Someone is manipulating the market, this is proof!
CME Group will launch Bitcoin options in early 2020
TOP-4 signs of market readiness for the launch of Bitcoin ETF
Demand for shares of Chinese fintech companies is growing in anticipation of the launch of the national digital currency