CME Group has revealed that they have no current plans to offer physically-settled bitcoin futures contracts. CME earlier announced that they are going to launch bitcoin options contracts in Q1 of 2020. The company believes that there is an increase in demand in the bitcoin futures market.
In an interview with Markets Media, Tim McCourt, global head of equity index and alternative investment products at CME told that since the launch of bitcoin futures in 2017, the number one demand from customers has been for option on the futures. He further added that the institutional interest in bitcoin is growing, but they need time to become familiar with the market.
Bitcoin options are coming in Q1 2020. @TimMcCourtCME joins @Options @FTSERussell @QuikStrike1 on #TWIFO to talk crypto appetite and how these new options contracts are designed to help traders manage and hedge their bitcoin price risk.
🎧 Listen here: https://t.co/XLwauqkls0
— CMEGroup (@CMEGroup) September 27, 2019
Earlier last week Bakkt launched it’s physically settled BTC futures contracts, but the trading volume has been very slim so far. The slow start by Bakkt has surprised the crypto community as many had expected the launch to boost the BTC market. Just one day after Bakkt’s launch price of BTC crashed by 13%. It was the largest intraday hit since January.
CME Group’s first-day volume was 5298 BTC, in comparison to 71 of Bakkt. Let us know in comments what do you think about the demand for BTC among institutes and CME exchange?