March 8, 2021

CME Unveils Bitcoin Futures Options Product Launch Date

CME Unveils Bitcoin Futures Options Product Launch Date

The Chicago Mercantile Exchange (CME) unveiled the launch date for Bitcoin futures options.

In response to the growing interest in cryptocurrencies and customer demand forBitcoin trading risk management tools, CME Group will launch options for BTC futures on January 13, 2020, the company said.

CME Group said the upcoming product is still awaiting regulatory approval.

The CME clarified that one futures contract forBitcoin will be equal to 5 BTC quoted in US dollars, with a minimum block of five contracts. According to the announcement, the exercise of the option will be accompanied by the appearance of a position in the underlying futures contract with cash settlement. Options with an expiring maturity are automatically converted into futures, which are calculated at the base rate of BTC CFE (BRR) CME at 16:00 London time on the last Friday of the contract month.

In September, CME Group unveiled plans forthe launch of options based on Bitcoin futures in the 1st quarter of 2020. At the time, Tim McCourt, managing director of CME Group, said the new products were designed to help institutions and professional traders manage BTC with the ability to hedge BTC futures in a regulated exchange environment.

In October, the company said it expects bigAsian demand for its upcoming BTC option product. McCourt noted that the options are likely to allow Bitcoin miners to insure themselves against losses associated with their activities.