CME Group to launch options on Bitcoin Friday Futures
Why is this a big deal?
Not long ago the Big Boys on the block were pushing FUD about BTC almost daily. Now they are all-in allowing Futures with expirations Monday - Friday of each week! Can you say full on financialization of BTC has arrived.
Who is CME Group (CME)?
The CME Group is the world's leading derivatives marketplace offering the widest rang of futures and options products for risk management. The are headquarted in Chicago, IL
The operate financial derivatives exchanges including:
- the Chicago Mercantile Exchange,
- Chicago Board of Trade,
- The Commodity Exchange,
- New York Mercantile Exchange
CME Group also has offices in New York, Houston, and Washington D.C., in the U.S., as well as abroad in Bangalore, Beijing, Belfast, Calgary, Hong Kong, London, Seoul, Singapore, and Tokyo. So far reaching influence for investors
Why now?
CME goal is to provide additional risk management flexibility to investors by complementing the company's existing line of physically settled options on bitcoin (BTC-USD), ether (ETH-USD), micro bitcoin, and micro ether futures. Does it make sense to bring to market another offering after crypto markets have been up so much in the past 12-months? Would it be better timed until we have suffered a considerable consolidation period?
Summary
With increased financialization of BTC via Futures we can expect more volatility even though futures claim to minimize volatility. You get to decide IF this helps or hurts the overall crypto market!
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