As of today, it will be possible for investors to trade Bitcoin options as well as futures on the traditional Chicago futures exchange CME.
This is a milestone for Bitcoin. Bitcoin options make it easier, especially for professional investors, to secure Bitcoin investments and to participate in the movements of the cryptocurrency.
“Since the introduction of our Bitcoin futures almost two years ago, customers have shown growing interest in options as another way to hedge and trade in these markets. (…) We believe that Bitcoin options now give our customers more precision and flexibility in risk management will offer, “said the CME Group.
CME has been trading Bitcoin futures for two years. The launch of this product in December 2017 had a massive impact on Bitcoin’s price. Although it climbed to a record high shortly after the start, the greatest crash in its history subsequently occurred.
Increasing acceptance in the financial world
It is uncertain whether the introduction of Bitcoin options at CME will lead to similar price pressure. More important could be the increasing acceptance of the unregulated cryptocurrency in the established financial world.
Since the beginning of December, the smaller platform Bakkt has been able to trade Bitcoin options, which had little impact on the price. After the turn of the year, Bitcoin became somewhat more expensive. The reason for the recent price increase was the US-Iran conflict.
The problem remains of the high exchange rate fluctuations that have so far largely made Bitcoin unsuitable as a means of payment. If you want to pay with digital money as a private person, there will be interesting alternatives available in the future. Among other things, a digital euro is under discussion.
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