Bitcoin Options on CME: What’s the Impact on the Market?

In the face of the tentative need for stabilization in the crypto market, the launch of Bitcoin Options on CME, leading crypto derivatives marketplace might just be the jolt the current crypto community needs to advance.

The US-based futures market announced the addition of its much-anticipated product to its marketplace earlier in the year. According to the company, the launched Bitcoin options have been made available on its platforms, CME Globex and CME Clearport.

Bitcoin Options on CME foster renewed interest in Bitcoin

The CME group options on Bitcoin are offered at strike prices ranged up to $70, 000. This, for investors, means that the options contract can only be used upon expiry of chosen dates – an option that pushes towards insurance against volatility.

However, the effect of these contracts on the market remains a subject of debate in large circles. For institutional investors and enthusiasts, these offerings propose calm to the impact of constant swinging prices in the market but could negatively impact the influence of Bitcoin in the market.

CME options on Bitcoin were created to provide its holders with options of a sell-off / trade at a preset rate at a certain date with each contract worth the price of five Bitcoin. This, in its way, provides traders and investors with insurance against price slumps in the long run.

Renewed interest in Bitcoin derivatives offerings

Bitcoin options on CME may increase in interest in cryptocurrencies for institutional investors – which could further foster mainstream adoption. In effect, options trading volumes worth about $2.1 million was recorded by the group as opposed to rival group Bakkt’s $1.2 million worth of Bitcoin – indicating a renewed interest in Bitcoin derivatives offerings.

However, in the light of the coming Bitcoin-halving, this interest could negatively affect the position as the leading cryptocurrencies. The robust interest in regulated crypto derivatives like Bitcoin options on CME could mean a correlation of the decentralized assets to the macro markets with price control relinquished to global speculations.