Despite the growing interest in cryptocurrencies from institutional investors, the management of the Chicago Mercantile exchange (CME) does not plan to launch bitcoin futures with physical delivery.
According to the exchange’s head of alternative investment products Tim McCourt, options for bitcoin futures will be launched on the CME next year. But the launch of cryptocurrency futures with physical delivery of the asset is not planned.
“Since we launched this product in 2017, customers have been asking most to add options to our futures. It is very difficult to build a new futures market, but we succeeded in this, because in may alone, trading volumes exceeded $1.3 billion,” said McCourt.
Options for cryptocurrency futures will use technologies that already work on the platform, the order matching engine and calculation mechanisms. The new product is currently undergoing internal testing.
“The interest of institutional clients in bitcoin is growing, but such investors need time to get used to the market and get the necessary permissions to use new tools,” said McCourt.
Recall that last week, bitcoin futures trading with physical delivery started on the Bakkt platform, but the results of the first week of trading were much lower than expected.