CME Group set to introduce options on bitcoin Friday futures in February

The launch represents the first CME Group cryptocurrency options to be financially settled.

CME Group is set to introduce options on bitcoin Friday futures on 24 February, with expiries available Monday to Friday.

Giovanni Vicioso

The launch – which represents be the first CME Group cryptocurrency options to be financially settled – is subject to regulatory approval. 

Giovanni Vicioso, CME Group global head of cryptocurrency products, said: “We are pleased to offer these new options that provide traders with even greater precision to manage short-term bitcoin price risk.

“Building on the success of our Bitcoin Friday futures, the smaller size of these contracts, along with daily expiries, offer market participants a capital-efficient toolset to effectively adjust their bitcoin exposure.”

These financially settled options complement CME Group’s existing suite of physically settled options on bitcoin, ether, micro bitcoin and micro ether futures, according to the firm.

To date, bitcoin Friday futures are CME Group’s most successful cryptocurrency product launch, with more than 775,000 contracts traded since launch and an average daily volume of 9,700 contracts.

“As a major liquidity provider in the digital asset derivatives space, we see CME Group’s introduction of options on bitcoin Friday futures as a timely, important addition to the market,” said Jason Urban, global head of trading at Galaxy.

“These contracts offer a flexible and cost-effective way for our trading desk to optimise risk management and provide tailored solutions to our counterparties navigating bitcoin price volatility.”

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