CME to Launch Financial Settled Crypto Options
Posted by Colin Lambert. Last updated: February 3, 2025
CME Group has announced it will introduce options on Bitcoin Friday futures on February 24, pending regulatory review.
The new contracts will be the first CME cryptocurrency options to be financially-settled, with expiries available Monday through Friday. CME says its Bitcoin Friday futures have become its most successful cryptocurrency product launch seeing more than 775,000 contracts traded since launch on September 29 at an average daily volume of 9,700 contracts, with 44% of contracts traded during non-US hours
“We are pleased to offer these new options that provide traders with even greater precision to manage short-term bitcoin price risk,” says Giovanni Vicioso, CME Group global head of cryptocurrency products. “Building on the success of our Bitcoin Friday futures, the smaller size of these contracts, along with daily expiries, offer market participants a capital-efficient toolset to effectively adjust their bitcoin exposure.”
Joshua Lim, global co-head of markets, FalconX, adds, “Given the increasing density of tradable catalysts in crypto, CME Group’s new option suite on Bitcoin Friday futures provides the granularity that market participants need for hedging and expressing nuanced views on Bitcoin.”
Meanwhile, Jason Urban, global head of trading at Galaxy, says, “As a major liquidity provider in the digital asset derivatives space, we see CME Group’s introduction of options on Bitcoin Friday futures as a timely, important addition to the market. These contracts offer a flexible and cost-effective way for our trading desk to optimise risk management and provide tailored solutions to our counterparties navigating bitcoin price volatility.”