CME Bitcoin options volume increases by over 100 percent to $5.3 million just a week after launch 🚨 This article is 5 years old...
CME Bitcoin options volume increases by over 100 percent to $5.3 million just a week after launch
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Updated: Apr. 6, 2020 at 1:18 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Trading volume for Bitcoin (BTC) options from the Chicago Mercantile Exchange, or CME Group, has increased by over 100 percent in just the first week after their launch.
Bitcoin options volumes more than doubled in the seven days following their introduction on January 13, 2020. The volume recorded, as of January 17, was 122 contracts, valued at 610 BTC, which is currently worth $5.27 million. On day one of their launch, BTC options volume was only 55 contracts, or 275 BTC, which is presently worth $2.37 million.
Open interest on Bitcoin options contracts remained steady at 219 contracts on Friday, which is valued at an estimated 1,095 BTC, or $9.45 million at current prices.
CME’s Bitcoin futures registered a total volume of 7,245 contracts last week, valued at $313 million
CME has said its BTC options are a success even though they were recently introduced. Meanwhile, analysts have noted that an increase in cryptocurrency derivatives product offerings shows that institutional investors are interested in Bitcoin (BTC) and other digital assets.
Bitcoin futures contracts also recorded a solid performance last week, with CME registering total volumes of 7,245 contracts, which were valued at 36,225 BTC or about $313 million. Intercontinental Exchange’s crypto trading desk Bakkt facilitated trades worth $15.2 million on the day.
But trading volumes dropped significantly on Bakkt toward the end of last week, data from social media monitor Bakkt Volume Bot confirmed.
CME introduced cash-settled Bitcoin futures in December 2017
It has been about two years since the CME introduced its cash-settled Bitcoin futures contracts in December 2017. During this time, the exchange has established itself as a key player in the regulated digital currency derivatives market, even though it might not always be the first to launch a new product.
The CME Group introduced regulated Bitcoin futures just a week after competitor CBOE launched its own. But CBOE exited the market after only 15 months. In August, CME confirmed it had posted record highs for Bitcoin futures trading.
CME’s volumes are dwarfed by Malta-based giant Binance, which reportedly recorded Bitcoin futures trades worth 111,000 BTC or $959 million during the past 24-hour period. The BTC futures volume is also roughly three times greater than Binance’s spot markets.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
CME Group
CME Group is a global markets company empowering participants to efficiently manage risk and capture opportunities in every major asset class..
Bakkt
Bakkt is a new company of NYSE-operator InterContinental Exchange (ICE) designed to bring digital assets to the mainstream and help unlock the potential of this important technology.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.