CME Group Launched Bitcoin Options, Prices Went Up
CME to Go For BTC-Futures, Options
Previously, the Chicago Mercantile Exchange Group (CME Group) launched bidding on bitcoin options. Thus, CME became a direct competitor to the regulated exchange Bakkt, on which options trading started on December 9.
The asset of the new financial instrument was BTC futures, launched by the company in December 2017. Then the price of the main digital coin set a historic high of $ 20,000. One contract corresponds to five bitcoins and undergoes centralized clearing on the trading platform, which avoids counterparty risks. To determine the Bitcoin exchange rate, CME uses data from several cryptocurrency exchanges.
On the evening of January 13, the CME Group of Chicago began trading Bitcoin options. The asset of the new financial product was the BTC futures contract, launched by the company at the end of 2017. One contract corresponds to five BTCs and undergoes centralized clearing on a platform for avoiding counterparty risks.
About 95% of transactions in Bitcoin options in 2019 took place on the Derbit derivatives exchange. Analysts at Skew claim that the product has been in high demand since the beginning of the year. For the first 1.5 weeks, the trading volume exceeded $ 90 million.
Also, earlier, the FTX platform announced the launch of its Bitcoin options. According to the CEO of Sam Bankman-Fried, in the first two hours of operation, its trading volumes reached $ 1 million.
Proponents of technical analysis believe that the confident ability of Bitcoin to exceed $ 8,200 may open the way for a more significant rally with the prospect of touching a critical psychological level at $ 10,000.