CME to launch bitcoin options in January

Chicago Mercantile Exchange (CME), the largest derivatives exchange in the world, announced options on its Bitcoin futures contract starting January 13th, 2020 pending regulatory review. Each contract is based on one futures contract which is currently worth five bitcoin.

Why It Matters:

• The futures contract trades over 30,000 bitcoin per day and the addition of a new hedging instrument gives these clients a new means to hedge their risk.
• A more robust derivatives market should improve the price efficiency and liquidity of the underlying spot market, an important step for any regulatory approval on future financial vehicles.
  

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