CME group announced On January 29, it would introduce options on his Bitcoin (BTC) Friday Futures. The new contracts will be launched on 24 February.
According to the announcement, the contracts are CME’s first financially registered crypto option product, although they are still awaiting the regulations.
Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, stated that the product wants to offer traders tools to manage Bitcoin price risk in the short term. He added:
“Building on the success of our Bitcoin Friday futures, offer the smaller size of these contracts, together with a daily expiry date, market participants a capital-efficient toolset to effectively adjust their Bitcoin exposure.”
Unlike traditional weekly options, these contracts will end every working day, from Monday to Friday, which makes it possible to make precise risk management.
The announcement also emphasized that the financial regulation of the new options adds the ease for traders who want to cover Bitcoin price movements without the complexity of physical regulation.
The introduction of options on Bitcoin Friday Futures will supplement CME’s existing series of physically registered crypto derivatives, including Bitcoin, Ethereum (ETH), Micro Bitcoin and Micro Ether Futures.
Since their debut on September 29, Bitcoin Friday -Futures have quickly become one of the most successful crypto -product launches in CME Group. The company shared that more than 775,000 contracts were traded, with an average daily volume of 9,700. In particular, 44% of the contracts were traded during non-American hours.
Ask for tools for crypto -risk management
The launch comes at a time when the institutional interest in Bitcoin is high. Private companies add BTC to their treasury and even countries – such as such as the US” Brazil” Switzerlandand the Czech Republic– It regards it for their reserves.
Joshua Lim, co-head of markets at Falconx worldwide, appealed to this movement:
“Given the increasing density of tradable catalysts in Crypto, the new options suite from CME Group on Bitcoin Friday Futures offers the granularity that market participants need for covering and nuanced views on Bitcoin.”
Galaxy Worldwide Jason Urban worldwide repeated sentiment and stated that the options offer “flexible and cost -effective way” for traders to optimize risk management and at the same time respond to shifting market conditions.