Crypto News

CME Group to Expand Cryptocurrency Options with Daily Expiry Contracts

Published by
Nonhlanhla P Dube
  • CME Group is expanding its range of cryptocurrency options by introducing standard- and micro-sized Bitcoin and Ethereum contracts with daily business-week expiries from May 22.
  • This development is a positive step for digital currencies as it brings regulated, reliable risk management products to the market.
  • CME’s move to introduce contracts with daily expiries demonstrates its commitment to meeting the evolving needs of its clients and expanding its suite of cryptocurrency options. The market for digital currencies is maturing, and we can expect to see further innovations and developments from CME and other leading financial institutions.

The CME Group, a leading derivatives marketplace, is set to expand its range of cryptocurrency options. Following the introduction of event contracts on Bitcoin futures, CME is now launching standard- and micro-sized Bitcoin and Ethereum contracts with daily business-week expiries from May 22. This development is a positive step for digital currencies as it brings regulated, reliable risk management products to the market.

CME’s global head of cryptocurrency products, Giovanni Vicioso, stated that clients are increasingly turning to platforms like CME Group for cryptocurrency risk management products amid heightened volatility in the digital asset sector. The move comes after CME’s Bitcoin and Ether futures and options complex achieved daily average volume in the first quarter of 2023. CME reported that the Bitcoin and Ether futures and options complex recorded a daily average notional of over $3 billion, reflecting increased client demand for liquid hedging tools.

Given the macro uncertainty in the market and heightened volatility in digital assets, there is likely to be continued demand for CME’s cryptocurrency risk management products. Meanwhile, Bitcoin and Ethereum, the two major digital currencies, have seen a rapid recovery in 2023, with prices rising by 78% and 74%, respectively. This indicates that investors are still bullish on the long-term prospects of digital currencies despite short-term volatility.

The introduction of contracts with daily expiries by a fully regulated platform like CME is a significant development for digital currencies. It provides traders with more flexibility in managing risk and allows them to take advantage of short-term price movements. Furthermore, the move demonstrates CME’s commitment to expanding its suite of cryptocurrency options and meeting the evolving needs of its clients. As the market for digital currencies continues to mature, we can expect to see further innovations and developments from CME and other leading financial institutions.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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