June 19, 2024

CME Unveils Bitcoin Futures Options Product Launch Date

CME Unveils Bitcoin Futures Options Product Launch Date

The Chicago Mercantile Exchange (CME) has announced the launch date of options based on Bitcoin futures.

In response to growinginterest in cryptocurrencies and customer demand fortools for managing the risks associated with Bitcoin trading, January 13, 2020 CME Group will launch options on BTC futures, – the company said in a statement.

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

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, exercise of the option will result in a cash-settled position in the underlying futures contract. Expiring options automatically convert to futures, which are settled at the CME's BTC CFE Reference Rate (BRR) at 4:00 pm 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.