CME Group Broadcasts Launch Date of Choices on Bitcoin Futures Product


The Chicago Mercantile Alternate (CME) Group has introduced the date it expects to launch choices on Bitcoin (BTC) futures in a statement on Nov. 12.

“In response to rising curiosity in cryptocurrencies and buyer demand for instruments to handle bitcoin publicity, CME Group will launch choices on Bitcoin futures (BTC) on January 13, 2020,” the corporate revealed within the announcement. The CME Group stated that the upcoming product remains to be pending regulatory approval.

Contract specs

CME Group specified that one Bitcoin futures contract will symbolize 5 BTC quoted in U.S. {dollars}, with a block minimal of 5 contracts. The announcement reads:

“Possibility train outcomes ready within the underlying cash-settled futures contract. In-the-money choices are routinely exercised into expiring cash-settled futures, which settle to the CME CF Bitcoin Reference Price (BRR) at 4:00 p.m. London time on the final Friday of the contract month.”

CME Group’s intentions and expectations on BTC futures choices

In September, CME Group revealed plans to roll out choices on BTC futures by Q1 2020. On the time, Tim McCourt — CME Group international head of fairness index and different funding merchandise — stated that the brand new merchandise are meant to assist establishments {and professional} merchants handle spot market BTC publicity, and allow them to hedge BTC futures positions in a regulated trade setting.

In October, the corporate stated it anticipated to see high demand in Asia for its forthcoming BTC choices product. McCourt famous that choices would seemingly allow Bitcoin miners to extra precisely hedge the prices of their manufacturing.

On the identical time, McCourt additionally stated that CME Group has no present plans to launch physically-settled Bitcoin contracts.

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