Amid growing interest in cryptocurrencies, the CME Group decided to launch Bitcoin futures options in early 2020.
The option gives the buyer the right to purchase or sell the asset at a predetermined value at a particular time in the future. It is noteworthy that the seller of the option cannot refuse the obligations stipulated by the contract. The seller can compensate for possible risks with a fee that is transferred to him from the buyer upon execution of the agreement.
Ti McCourt, representative of the CME Group, noted that due to the increase in customer demand for crypto products, the exchange decided to launch options, as this will provide customers with special flexibility in the trading process, as well as give them an additional tool for hedging risks at work with flagship cryptocurrency. The new product will assist in managing BTC in the spot market not only for institutions, but also for professional traders.
Recall that at present, the exchange offers Bitcoin futures, the launch of which took place two years ago. The launch of a new instrument on the basis of an existing exchange offer requires additional permission from regulators.
