During a recent interview with Markets Media, CME's Tim McCourt says that institutions are becoming more interested in Bitcoin, but physically-delivered futures are not currently on the table for the Chicago-based exchange.
Bakkt is off to a cold start
The underwhelming launch of Bakkt raised many questions about whether the proverbial institutional money is here for Bitcoin
As reported by U.Today, the highly anticipated launch of physical Bitcoin futures finally happened on Sept. 23 with a lot of excitement in the air. However, during its first week, the ICE-backed exchange managed to trade only $5 mln worth of contracts.
The cold reception of the new product possibly explains why CME doesn’t plan to chip away at Bakkt’s market share anytime soon.
CME’s Bitcoin success
According to McCourt, institutions, such as hedge funds and asset managers, are becoming increasingly keen on investing in Bitcoin. However, they are not ready to jump feet-first in untested waters.
“The institutional interest in bitcoin is growing but they need time to become familiar with the market and get approval to use new products,” said McCourt.
McCourt also described CME’s Bitcoin bet as “hugely successful.” The exchange recorded a 132 percent increase in the number of cash-settled futures contracts compared to 2018.
CME Group will also launch Bitcoin options in Q1 2020.