Dec 22, · In response to growing interest in cryptocurrencies and customer demand for tools to manage bitcoin exposure, CME options on Bitcoin futures (BTC) are now trading. The value of options on Bitcoin futures is based on the regulated CME CF Bitcoin Reference Rate (BRR) and settles into actively traded Bitcoin futures. Bitcoin futures enable traders to get exposure to digital assets like Bitcoin without having to physically (or digitally in this instance) hold the underlying asset. Bitcoin Futures operate like a standard futures contract for a stock, commodity, bond or index and allow Bitcoin futures traders to speculate on the future price of Bitcoin. Nov 05, · In brief Bitcoin futures are a type of simple agreement contract to buy or sell Bitcoin at a specific price at a specific future date. They have grown in popularity, with Bitcoin futures now representing more than 75% of all Bitcoin trade volume.
Trading futures on bitcoinBitcoin Futures
Image: Shutterstock. Now, Bitcoin futures volume is widely considered to be one of the most accurate indicators of institutional interest in Bitcoin. Since many of these products are regulated, they allow firms to gain exposure to Bitcoin without— in most cases —needing to hold the underlying asset, while the capacity to trade on leverage allows these firms to closely manage their risk profile.
Bitcoin futures are a type of simple agreement contract to buy or sell Bitcoin at a specific price at a specific future date. They differ from a Bitcoin ETF , which is a commodity fund that tracks the price of Bitcoin as its underlying asset. Advocates of Bitcoin futures argue that their emergence leads to more efficient price discovery —since traders and investors can now short Bitcoin just as easily as going long.
However, in the years since they first launched, Bitcoin futures have been frequently scrutinized by industry experts—many of whom argue that some of the platforms offering Bitcoin futures products are not compliant with relevant regions, while some may be operating illegally. The lack of regulatory oversight on some Bitcoin futures platforms has led to accusations of market manipulation.
Matters came to a head in October , when BitMEX—once the most popular Bitcoin futures exchange by trading volume—was charged with operating an unregistered trading platform, among other things. Moreover, the United Kingdom's financial watchdog, the Financial Conduct Authority FCA recently announced a ban on certain types of cryptocurrency derivatives for retail customers, including futures and exchange-traded notes ETNs —signaling a potentially worrying trend among regulators.
Despite the first Bitcoin futures appearing as recently as , cryptocurrency derivatives are now by far the most popular way to trade Bitcoin. As per data from CryptoRank, Bitcoin futures now account for Though the vast majority of this trading volume is accounted for by institutional investors, the increasing accessibility and simplicity of futures products, as well as the growing range of available educational materials, have helped make Bitcoin futures accessible to casual investors.
However, a wide variety of alternative derivatives products have begun to emerge as of late, some of which may prove more attractive to both institutional and retail traders. One of these alternatives includes Bitcoin options—a type of derivative product that is similar to futures but enables more complex trading strategies.
Now trading: Bitcoin options on futures. Key benefits. Easily trade on your market view. Efficient price discovery in transparent futures markets. Subscribe for updates on Bitcoin futures and options. Are you new to futures markets?
You're in the right place. Learn more about what futures are, how they trade and how you can get started trading. Why Trade Futures. Latest trading activity. Contract specifications. Bitcoin futures Bitcoin options Bitcoin futures View full contract specifications. Central Time Sunday — Friday.
CT with a minute maintenance window Monday - Thursday from p. Bitcoin options View full contract specifications. Options Style European style. Exercisable only on final settlement day Pending regulatory review and certification View Rulebook Details.
Vendor trading codes. CME Direct users: download the Bitcoin options grid. Right click on the buttons below Save the files as an. Learn about Bitcoin. Video not supported! Learn about the underlying Bitcoin pricing products. BRR Reference Rate. Last Updated -. BRR Historical Prices:. More in cryptocurrencies. Read more. All rights reserved.
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