Bitcoin, the world’s largest cryptocurrency, has flipped a coin, turning upwards after days of swinging in the low zone. The cryptocurrency returned to trading above the $8,000 mark on 10 January 2020 and has since, continued to maintain its upward momentum. At press time, the cryptocurrency was trading at the same level as that on 17 November 2019, priced at $8512.14.
While the reason for the upward movement could be attributed to several factors, the cryptocurrency did recently get a push from the CME Group. The leading derivatives platform launched its Bitcoin Options contract for its Bitcoin Futures on 13 January, with the king coin seeing an uptrend days before its launch. Interestingly, even JPMorgan highlighted that there is increasing interest in the platform’s Options market, stating that the interest appeared “to be building” and that the market implied “high anticipation,” according to Bloomberg.
A day after its Options market launch, the CME has already set a milestone by recording more numbers on its contract in the first 24 hours, than that of its nemesis – Bakkt, the crypto-venture by Intercontinental Exchange. In a blog post titled ‘New Year, New Options on CME Bitcoin Futures,’ Tim McCourt – the Managing Director, stated that the beginning days of the year saw “strong participation in our CME futures.” He went on to highlight that more than 17,000 contracts, approx. worth more than 85,000 BTC, were traded on 8 January.
McCourt said,
“The number of open positions held by traders […] has also increased to more than 5,000 contracts (…over 25,000 bitcoin) since the start of the year. We’re optimistic about the new year and what opportunities it will bring for our clients, traders and industry partners, beginning with the introduction of options on CME Bitcoin futures today.”
Heralding the new product launch as a “next chapter” to its years of history in the Options contract market, the Managing Director claimed that the firm is “excited” to offer “additional flexibility to trade and hedge Bitcoin price risk on a regulated exchange.”
“In fact, CME Group is the only derivatives marketplace where clients can trade options across every investable asset class. And with an average daily volume of over 4 million options contracts in 2019, now is an exciting time to introduce options on CME Bitcoin futures to the market.”
