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Technology CME to start offering options on bitcoin futures early next year

21:50  20 september  2019
21:50  20 september  2019 Source:   reuters.com

NYSE Owner to Offer Futures Paying Out in Bitcoin Next Month

NYSE Owner to Offer Futures Paying Out in Bitcoin Next Month Intercontinental Exchange Inc., the parent of the New York Stock Exchange, won an approval that clears the way for its Bakkt unit to allow investors to buy derivatives that pay out with Bitcoins for the first time. The New York State Department of Financial Services on Friday granted a charter to Bakkt Trust Co. to hold custody of customers’ tokens. The futures had already gotten a green light from the U.S. Commodity Futures Trading Commission under a self-certification process. The first contracts will be offered Sept. 23.

NEW YORK (Reuters) - CME Group, the world's largest futures exchange operator, said on Friday it plans to launch options on its bitcoin futures contracts in the first quarter of 2020, giving traders another way to hedge their risk in the cryptocurrency.

CME launched bitcoin futures in December 2017 and has signed up 3,300 individual accounts and had 20 successful expiration settlements since then, the company said.

"These new products are designed to help institutions and professional traders to manage spot market bitcoin exposure, as well as hedge bitcoin futures positions in a regulated exchange environment," said Tim McCourt, global head of equity index and alternative investment products at CME.

Crypto Crash Prompts Guessing Game as Bitcoin Breaches $10,000 Again

Crypto Crash Prompts Guessing Game as Bitcoin Breaches $10,000 Again Cryptocurrencies plunged suddenly in afternoon trading on Wednesday, spurring a guessing game of potential catalyst among enthusiasts and investors. The price of Bitcoin dropped below $10,000 for the first time since July. The largest digital token fell as much as 5.6%, before trading at $9,686 as of 3:40 p.m. in New York. Peer coins also sold off, with Bitcoin Cash falling close to 4% and Litecoin dropping about 8%. © Bloomberg Bitcoin dropped as much as 5.

Bitcoin, which was created in 2008 as an alternative to government-backed currencies, has been notoriously volatile, surging to an all-time high of nearly $20,000 in late 2017 before plunging in 2018 to end the year at less than $4,000. The digital currency was trading at $10,134.99 around midday on Friday.

Nearly 7,000 bitcoin futures contracts, equal to around 35,000 bitcoin, have traded on average each day on CME so far this year, the Chicago-based company said.

New York Stock Exchange owner Intercontinental Exchange Inc plans to begin offering physically-delivered bitcoin futures contracts on Monday through its long-awaited crypto-trading platform, Bakkt.

(Reporting by John McCrank; Editing by David Gregorio)

Bitcoin Speculators Gain Upper Hand as Derivative Trading Surges .
As Bitcoin becomes boring for many in the get-rich-quick crowd with volatility ebbing, trading in derivatives of the largest cryptocurrency is exploding. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); At $5 billion to $10 billion a day, the amount of derivatives traded globally exceeds Bitcoin spot volume by 10 to 18 times, according to estimates from data trackers Skew and BitcoinTradeVolume.com.

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