CME Group, one of the world's leading derivatives markets, announced plans to introduce options to Bitcoin Friday Futures from February 24th. These new agreements will become the first cryptocurrency option from the CME Group, which will be financially resolved and available on annual business days from Monday to Friday.
A financially set option, also known as a cash setting option, is a derivative agreement that does not involve physical delivery of assets that are based on expiration dates. Instead, profits or losses from options are calculated at expiration date based on the difference between the strike price of the option and the market price of the underlying asset, and this amount is paid in cash.
“We are pleased to announce that Giovanni Vicioso, global head of cryptocurrency products at CME Group,” said: “Based on the success of Bitcoin Friday Futures, these contracts are small in size and with daily expiration dates, we provide market participants with a capital-efficient toolset to effectively adjust Bitcoin exposure. Masu.”
CME Group said these financially established options will strengthen the lineup of other cryptocurrency derivatives.
“Given the increased density of crypto trading-able catalysts, CME Group's new suite of Bitcoin Friday futures offers the granularity that markets need subtle opinions on Bitcoin.”
Since its launch on September 29th, Bitcoin Friday Futures has become the CME Group's most successful cryptocurrency product, with over 775,000 contracts traded and an average daily volume of 9,700 contracts. In particular, 44% of transactions occur during non-US hours, highlighting global demand.
