CME Group Doesn't Plan to Launch Physically-Delivered Bitcoin Futures

Libra Coin News
Tue, 10/01/2019 - 18:26
Alex Dovbnya
CME will not launch physically-delivered Bitcoin futures despite great demand for its cash-settled product    
Cover image via U.Today
Contents

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.

Related
Trump Fuels Bitcoin Fire by Calling Fed "Pathetic" for Not Making US Dollar Weaker

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.

Related
Bitcoin Starts Q4 on a High Note, EOS, Ethereum, Ripple's XRP, and Other Top Altcoins Follow Suit with Solid Price Gains

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.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


This site uses cookies for different purposes. Please set your preferences in Consent Settings and visit our Cookie Policy for more information on how and why cookies are used on this site.

Cookie policy