update 27 October 2021

Bitcoin Options on Futures Now Available at CME Group

About four months ago, CME Group announced its plans to launch Bitcoin options on futures. The platform, however, announced the opening of its options market for investors and traders. CME revealed this through its official Twitter handle, mentioning that it provides better capital efficiencies and another means of managing Bitcoin exposure.

CME Group first announced the introduction of a regulated Bitcoin options market. Bakkt also delivered the product last month by opening its Bitcoin Monthly Futures Contract. Additionally, FTX also introduced options trading before CME and recorded $1 million in trading volume. Nevertheless, CME finally delivered Bitcoin options on futures on the 13th of January of 2020.

Analyzing Options Trading Market

Market participants consider options trader as quite risky and volatile, and there is always a dynamic change in sentiment around the futures market within the previous few months. A likely factor that promoted this is the regulator’s approval of regulated futures markets, CME and CBOE, at the end of 2017, towards containing the Bitcoin bubble, leading to the price fall.

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Bobby Ong confirmed the factor and added that the price always becomes volatile every time towards the CME’s contract expiry on the last Friday of the month at 4 pm London. Ong also maintained that the likelihood of having slow growth would ultimately grow to 20% of the derivatives market traditional markets.