Strong Initial Performance
The Chicago Mercantile Exchange (CME) has kicked off 2020 with a bang, as it launched its Bitcoin options trading product on January 13, to great fanfare and success. Tim McCourt, managing director and global head of equity index alternative investment products at CME Group, couldn’t hide his enthusiasm during a recent interview.
Day One Highlights
“We’re very pleased with how day one went,” exclaimed McCourt on January 14. The results from the launch were promising, with 55 options contracts traded, representing a total of 275 Bitcoin. That’s a staggering notional value of around $2 million! Not too bad for a first-day outing, right? It seems like everyone was eager to join the crypto party.
Customer Feedback and Progress
According to McCourt, the feedback from clients was overwhelmingly positive. As he dove deeper into the numbers, he revealed that, by 2:40 PM EST of the launch day, CME’s Bitcoin options had already seen 15 contracts processed through Globex, the exchange’s electronic trading platform. People were not only buying— they seemed to be buying with gusto!
Planning and Execution
The road to this launch was paved months in advance. Back in the fall of 2019, CME announced its intentions to release a Bitcoin options trading product based on its Bitcoin futures offerings. With the regulatory green light shining bright, the exchange was ready to take the plunge. McCourt summarized, “We hit our targets regarding volume, block trades, and market development throughout the day.”
Long Journey to Launch
The journey for CME’s Bitcoin options product has certainly been long. McCourt reminisced about the conversations he had with clients since the inception of Bitcoin futures. It’s been a topic of interest ever since those first futures were introduced at the peak of the crypto market back in December 2017. Now, here we are—embracing a product that many crypto enthusiasts had been eagerly waiting for.
The Future Is Bright?
As atmospheres heat up in financial markets, it’s clear that the new Bitcoin options offer a compelling avenue for investors to hedge and speculate. While the future is uncertain (as crypto often is), with successful launches like CME’s, who knows what other innovative financial products might be right around the corner?
