New financial products in the field of crypto-currencies are gaining more and more adaptation and new financial instruments are introduced to the market. The CME has now announced the official start date for Bitcoin warrants for the beginning of next year.
The derivatives marketplace CME Group, today announced that options on its Bitcoin Futures contracts to their customers at the 13. January 2020 are available. The contractual policies of the company are currently being checked by the regulatory authorities, so that the Bitcoin option product from CME, which will come in the new year on the market, the traders a new way to hedge their exposure to Spot and futures markets will be open, unless approval is granted by the authorities. The company performs in the official press release (freely translated):
We are delighted to confirm the appointment for the market. Options are a product that is in demand from customers since the introduction of the Futures in December 2017 much. We are certainly excited to see what happens. The Feedback this Morning has been great from the customers. The people are excited and we look forward to bringing this new risk management instrument on the market.
Tim McCourt, Global Head of Equity Index and Alternative Investment Products at CME Group said.
The CME brought her Bitcoin Futures product at a time on the market, as the Bitcoin reached an all-time high of almost US $ 20,000. Other companies such as the CBOE and the Cantor Exchange occurred rapidly in the footsteps of the CME, and went through a self-certification process, the offer allowed them, own Bitcoin Futures contracts. At that time the Chairman of the Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo told CNBC that Bitcoin is unlike any other commodity, with which the company had ever employed, but that they were with the actions of the CME Group and its competitors to ensure the safety of your customers satisfied. McCourt continues to (freely translated):
We have had detailed discussions with the exchanges on the proposed contracts. The CME, the CFE and Cantor have agreed on significant improvements to protect the customer and to keep the markets orderly.
According to the CME, the average daily volume for Bitcoin is Futures contracts on its platform in the year 2019, up to 6,500 – the equivalent of around 32,500 people in Bitcoin, or $ 285 million at today’s prices. The demand for Bitcoin options have increased in the last few months, as more and larger institutional investors want to enter the market and their investments, according to hedge, far from a necessary Custody solution.
The CME follows the crypto-currency stock exchange Bakkt, which has also announced the launch of Bitcoin options Bitcoin Futures contracts for the 09.12.2019. The CME is not, however, proceed to act in a physical Bitcoin Futures, according to the current state of knowledge of the Board. The introduction of additional digital financial products could also pave the way for other financial instruments, such as a Bitcoin ETF, describes Gabour Gurbacs, CEO of VanEck (freely translated):
These kind of solutions should help to promote the adoption of Bitcoin in regulated institutions, and the way for regulated investment vehicles such as ETFs pave.
It remains to be seen how big the impact of these new financial products will be for the crypto currency market.
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