Within just a week of launching, CME Bitcoin options have started surging in volumes. The CME Group now has two Bitcoin derivatives products and both performed well during the month.
In the last one week, the 122 Bitcoin options were traded on CME. During the same time, they also witnessed the trade of 17,000 Bitcoin futures contracts. On the first day of trading, the platform witnessed a trade of just 55 contracts valued at $2.37 million. However, the number has now doubled. At the end of the week, 122 Bitcoin options contracts worth $5.27 million were traded on the platform.
Tim McCourt, the global head of equity index at CME noted that the derivatives product has high demand amongst investors. In November, he told Decrypt,
“We’re certainly excited to see what happens. Folks are excited about it and we’re happy to bring this new risk management tool to the market.”
CME leaves Bakkt behind
The key takeaway from CME Bitcoin options figures is that the platform has become the de facto leader in this space. Their estimates about high demand are proving true. Moreover, the Intercontinental Exchange (ICE) backed platform Bakkt behind. The owner of the New York Stock Exchange (NYSE) successfully launched the Bakkt Bitcoin options platform in December 2019. However, a month early launch didn’t help it gain traction. The volumes on Bakkt haven’t picked up to date and remain only a fraction of CME’s figures.
Data from Skew Analytics said that Bakkt’s early launch of cash-settled Bitcoin futures and Bitcoin options didn’t startle the investors. The difference is evident in both options and futures. On January 7, Bakkt witnessed its best futures contract trading day when 4,823 contracts worth $40.8 million were traded. On the same day, CME witnessed trading of over 17,000 contracts worth $141 million. Bakkt’s all-time high futures volume is 6,600 contracts from December 18, 2019.
The crypto market is experiencing an uptick in recent times because of which CME’s offerings could be getting more investors. Bitcoin is quickly rallying up to the $9,000 mark which could have renewed interest in the CME options.