June 14, 2021

CME Launches Bitcoin Options Trading

The Chicago Mercantile Exchange (CME Group) began trading Bitcoin options today, January 13, at about 15:00 UTC.

On website indicated that new tools arecalculated and based on the CME CF Bitcoin Reference Rate (BRR) - the reference bitcoin rate against the US dollar, compiled according to the spot exchanges Bitstamp, Coinbase, itBit, Kraken and Gemini.

As well as for futures, 1 option contract of the European type corresponds to 5 BTC. The minimum price step is 5 index points, corresponding to $ 25.

Thus, today CME has become a direct competitor to the regulated exchange Bakkt, the option trading on which started a little earlier - on December 9.

Competition is also growing among unregulated sites. For example, yesterday, January 12, option trading began on the Binance-supported FTX exchange.

FTX founder Sam Bankman-Fried said that just two hours after the options were launched, their trading volume reached $ 1 million, and in the first 12 hours deals with 2,000 contracts were concluded.

Also, similar tools will soon appear on the CoinFLEX and Bitfinex trading floors.

Recall, The Block analyst Frank Chaparroconsiders the launch of bitcoin options on the Chicago Mercantile Exchange an important step in the development of the derivatives market, which will serve as a powerful signal for investors and open up new opportunities for miners to manage risk.