Derivatives exchange giant, CME announced it was all set to launch bitcoin options contract from the first quarter of 2020. The news portal The Block Crypto had announced earlier in September, that CME was all set to add another bitcoin-backed product to its exchange.
A press release from CME confirmed the news saying, “Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk.” CME Group Global Head of Equity Index and Alternative Investment Products, Tim McCourt said, “These new products are designed to help institutions and professional traders to manage spot market bitcoin exposure, as well as hedge Bitcoin futures positions in a regulated exchange environment.”
The company had its inception in 2017 and since then they have launched nearly 7,000 CME Bitcoin futures contracts (equivalent to about 35,000 bitcoin) each day. This news comes soon after Bakkt, another derivatives-backed exchange announced that they would go live tomorrow.
Crypto Dost had earlier reported that after multiple postponements, Bakkt had finally revealed that it would go live on September 22. In a blogpost, the platform had said, “Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.”
Earlier this month, Adam White, the Chief Operating Officer (COO) at Bakkt had said, “The launch of the Bakkt Warehouse, our regulated custodian and part of Bakkt Trust Company, allows for the safe, secure storage of bitcoin. It represents a milestone as we prepare for the launch of the Bakkt Bitcoin Daily and Monthly Futures contracts on ICE Futures U.S.”