CME adds daily BTC/ETH expiration contracts

The Chicago Mercantile Exchange (CME) has announced its plans to add daily expirations on Bitcoin and Ether futures options contracts. This move is expected to provide traders with greater flexibility to hedge their positions and manage risk more efficiently. Coindesk reported on this development on April 17, 2023.

Bitcoin futures and options have been gaining significant traction in the market, with Q1 2023 ADV exceeding 11,500 contracts and open interest (OI) averaging a record 24,094 contracts. The growing demand for Bitcoin options trading is evident as a record 2,357 Bitcoin options contracts were traded on March 22, and OI reached a record 14,700 contracts on March 31.

Ether options trading has also been on the rise, with more than 4,600 Ether options contracts traded since their launch in September 2022. A record 311 Ether options contracts were traded on Feb. 22, and a record OI of 1,800 contracts was reached on March 24.

The addition of daily expirations on Bitcoin and Ether futures options contracts is expected to cater to the growing demand for flexibility and risk management in the market. With daily expirations, traders will have the option to choose from a wider range of contract expirations, allowing them to adjust their positions more effectively in response to market movements.

This move by CME is likely to attract more traders to the Bitcoin and Ether options markets, as it provides them with greater flexibility to tailor their trading strategies to their specific needs. The availability of daily expirations will also help traders to better manage their positions in volatile markets, reducing their exposure to risk.

CME’s decision to add daily expirations on Bitcoin and Ether futures options contracts is a clear indication of the growing demand for cryptocurrencies in the financial market. As more traders and investors turn to cryptocurrencies, it is expected that these markets will continue to evolve to meet their needs, providing them with greater flexibility, transparency, and efficiency in trading.

In conclusion, CME’s move to add daily expirations on Bitcoin and Ether futures options contracts is a significant development in the cryptocurrency market. It is expected to provide traders with greater flexibility and risk management capabilities, attracting more investors to these markets. As the demand for cryptocurrencies continues to grow, it is likely that we will see further developments in the market, providing traders and investors with new opportunities to capitalize on this emerging asset class.

Source:

(2023), CME to Add Daily Expirations on Bitcoin and Ether Futures Options Contracts, https://www.coindesk.com/business/2023/04/17/cme-to-add-daily-expiries-on-bitcoin-and-ether-futures-options-contracts/ (Access Date: 2023-4-17).

Original link: Crypto Nook