On January 13, 2020, the bitcoin option product of CME was officially launched, with a trading volume of more than US $2.1 million on the first day. Tim McCourt, head of Zhishang, said the move would provide market participants with more flexibility. With the improvement of the derivatives trading market, the bitcoin trading market will attract more and more professional traders. The launch of the option products of the compliance exchange is also regarded as a milestone for bitcoin’s global development, which may affect the market trend in the future.
On the first day of launch, the trading volume of CME bitcoin options was US $2.1 million
According to the statistics of theblock, on the first day of launch, the trading volume of CME bitcoin options was 55 contracts, equivalent to 275 bitcoins, with a value of about US $2.1 million, exceeding the trading volume of US $1.15 million on the first day of bakkt bitcoin options.
Transaction history of CME and bitcoin
CME, fully known as the Chicago Mercantile Exchange, is the world’s largest futures and options market, with the most complete and extensive CBOT agricultural futures and options. In 2019, CME’s daily average option contract trading volume reached more than 4 million.
CME’s bitcoin futures went online in December 2017. By 2019, CME’s annual total number of bitcoin futures trading contracts exceeded 248w, equivalent to 1250W bitcoins, and the average daily trading volume reached 6200. It has rapidly developed into one of the most liquid bitcoin derivatives trading markets in the world.
The launch of bitcoin option of Zhishang is likely to affect the market trend
On the basis of existing bitcoin futures trading, Tim McCourt, general manager of Zhishang, believes that the introduction of CME bitcoin options can provide market participants with more flexibility and can trade on regulated exchanges to hedge their bitcoin price risk.
Before the launch of CME options, Nikolaos, managing director of global market strategy of JPMorgan Chase, said that although bakkt, a subsidiary of Intercontinental Exchange, began to provide options business in December 2019, the trading volume and position are very small. Unlike Zhishang, Zhishang has always dominated the market in bitcoin futures trading, In particular, the positions held in the past few days have increased by 69% compared with the end of 2019, and the number of large positions has increased significantly. Abnormal market activities may reflect the high expectations of market participants for option products. Therefore, CME’s launch of option contracts is likely to affect the market trend.
Bloomberg analyst Mike McGlone is very optimistic about the prospect of bitcoin. He believes that the launch of futures listing options is an important step to increase the acceptance of bitcoin in the market. The launch of CME bitcoin options will once again increase the channel for bitcoin investment in the traditional market.
Responsible editor; zl