Key Takeaways

  • Volumes for CME’s Bitcoin futures options will reach 2,392 BTC ($22.7 million) on June 20, 2020
  • CME is one of just a few traditional markets that offers Bitcoin futures and Bitcoin futures options
  • Deribit, however, remains the largest Bitcoin futures platform with over $1 billion in notional volume

Share this article

The Chicago Mercantile Exchange, or CME, has seen the volume of its Bitcoin futures options grow from 91 BTC ($860,000) to 2,400 BTC ($23 million). That amount represents a 25-fold increase in just two months.

What Are Options on Futures?

CME’s Bitcoin futures options are different from Bitcoin futures in that investors have a right (not an obligation) to buy and sell:

“CME options on bitcoin futures give the buyer of a call/put the right to buy/sell one bitcoin futures contract at a specified strike price at some future date.”

By contrast, standard Bitcoin futures contracts require investors to buy and sell under certain conditions or on certain dates.

Why Are CME’s Options Growing?

There are a few different explanations as to why the demand for CME Bitcoin options has grown so rapidly over the past two months. One factor in CME’s popularity is the fact that few mainstream markets offer similar services. Though CME accounts for a fairly small share of the overall Bitcoin futures market, it seems to appeal to institutional investors due to the fact that it is a traditional market and not a decentralized finance platform.

Tim McCourt of CME has also suggested that economic uncertainty is driving interest. In a recent CoinDesk interview, he explained that CME’s contracts allow investors to “express views and manage their risk amid ongoing global uncertainty.”

Cred - Crypto that isnt cryptic

Another contributing factor may be the fact that it naturally takes time to attract investors. CME’s Bitcoin futures options are a fairly new service, first introduced on Jan. 13, 2020.

Other Competing Services

CME is not the only market that offers Bitcoin futures and options. Deribit, a DeFi crypto derivatives exchange, has proven to be incredibly popular. Its Bitcoin futures options hit $1 billion this May, giving it market dominance by a large margin.

Total BTC Options Open Interest
BTC options open interest by Skew

Binance, not shown on the chart, also began to offer options this April. Some services have decided not to offer futures and options. CBOE discontinued Bitcoin futures in June 2019, while BitMEX has suggested that it would be a challenge to introduce options. Hegic, meanwhile, has shut down intermittently due to difficulties.

Regardless, Bitcoin futures and Bitcoin futures options are in fairly high demand by any measure.

Share this article

90 COMMENTS

  1. Very good info. Lucky me I came across your blog by accident (stumbleupon).
    I’ve saved it for later!

  2. hello my lovely stopforumspam member

    What are the Types of Loans in Ohio depending on the purpose
    Specific purpose payday loans in Ohio. Funds received in debt may be spent only for a specific purpose specified in the loan agreement.
    Non-purpose loan. The debtor may spend the money received at his discretion.
    Most popular specific purpose payday loans in Ohio are:

    House loan. The most common, of course, is a mortgage when the purchased property acts as collateral for a loan. Sometimes a youth loan is issued, with lighter conditions for debtors. Still quite common is a housing loan that does not imply purchased housing in the form of collateral.
    Car loan – payday loans in Ohio to a car or similar vehicle. The key is often the purchased goods, making the terms of the loan better. Also, loan conditions are improved: car insurance, life and health insurance of the borrower, and receiving a salary to the account of the creditor bank.
    Land loan. To purchase a plot for construction or agricultural activities.
    Consumer. For purchases in modern supermarkets, equipment stores, you can take a personal loan right at the point of sale. Often, specialists located there can contact the bank and get a regular or fast payday loans. Borrowed funds automatically pay for the goods, and the consultant explains when and how to re-pay the debt.
    Educational loan. It is issued to students, as well as to applicants who have passed the competition, to pay for tuition at universities, colleges, etc.
    Broker loan. For the circulation of securities, payday loans in Ohio are issued to an exchange broker, se-curities are purchased securities.
    Others. Objectives not related to those listed, but agreed and approved by the creditor.

  3. Howdy! I could have sworn I’ve been to this website before but after browsing through some of the posts I realized it’s new to me. Nonetheless, I’m definitely delighted I came across it and I’ll be bookmarking it and checking back regularly!|

  4. My partner and I stumbled over here by a different web page and thought I might check things out. I like what I see so now i’m following you. Look forward to exploring your web page again.|

  5. Greetings, There’s no doubt that your site could be having internet browser compatibility issues. When I look at your website in Safari, it looks fine however, if opening in IE, it has some overlapping issues. I merely wanted to provide you with a quick heads up! Other than that, excellent blog!|

  6. I am not sure where you’re getting your information, but good topic. I needs to spend some time learning much more or understanding more. Thanks for fantastic info I was looking for this information for my mission.|

  7. I appreciate, lead to I found exactly what I was looking for. You’ve ended my four day long hunt! God Bless you man. Have a nice day. Bye|

LEAVE A REPLY

Please enter your comment!
Please enter your name here