The CME Group has launched its options on bitcoin futures this Monday, January 13, and a total of 55 options contracts were trading during the debut session.

In total the 55 options contracts are equivalent to 275 BTC changing changes, or around $2.33 million. The trading volume was seen as low by some and reacting to it Tim McCourt, global head of equity index products at the CME, told Bloomberg:

Although it takes time to grow any new market, we’re pleased with the response from customers and market participants so far.

Each Bitcoin futures contract is quoted in U.S. dollars and represents five BTC, currently worth around $42,500. These bitcoin derivatives give investors a right but not an obligation to buy or sell the underlying asset within a set time period. Each options contract settles into one Bitcoin futures contract.

Mike McGlone, an analyst with Bloomberg Intelligence, noted that the launch of options on bitcoin futures is a “significant step in the direction of increasing exposure to Bitcoin.” McGlone added that options are only launched and tradable on a “liquid underlying and the trend In BTC futures on the CME is increasing volume and open interest.”

It’s worth noting that last week McGlone wrote in a report that he believes bitcoin is “winning the adoption race” in the cryptocurrency space, and could see its price keep on rising in 2020. Its volatility, he predicted, is set to keep on declining this year.

The price of bitcoin appears to have positively reacted to the launch of CME’s options on bitcoin futures, as the cryptocurrency is currently trading at $8,496 after rising 4.75% in the last 24-hour period. As reported, McCourt had said the firm’s clients “expressed a growing interest in options as another way to hedge and trade in these markets” ahead of the launch.

Featured image by Roy Buri on Pixabay