CME Group Expects Bitcoin Options to Be Popular With Asian Investors

  • CME Group's Tim McCourt says he expects the launch of BTC options to be a hit with Asian investors and crypto miners.
  • The exchange is planning to launch its options product in Q1 2020.

Exchange operator CME Group expects bitcoin options trading to be a popular investment product for Asian clients, according to a new report. 

Tim McCourt, CME Group’s global head of equity products and alternative investment, said he believes the launch of bitcoin options trading will go over especially well with Asian clients. The U.S.-based futures trading platform is eyeing Q1 2020 for the launch of their new bitcoin-derivatives based product which will provide investors access to BTC options trading. 

McCourt explained that Asian and European investors have accounted for roughly half of the trading volume for CME’s bitcoin futures thus far. McCourt also said that bitcoin options will empower crypto miners by allowing them to hedge the cost of their production. 

The CME Group exec further described the appeal on options, 

While futures give you a one-for-one exposure, whereby the movement of the underlying bitcoin translates directly to a specific dollar value per contract, an option gives you varying strike-price levels and can give you either downside protection, or upside exposure at a fraction of the underlying [assets’s] price.

McCourt addressed the slow start to rival Intercontinental Exchange’s Bakkt, saying that CME Group has no intention of launching physically-settled contracts. 

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