CME Group to launch cash-settled options on Bitcoin futures

The Chicago Mercantile Exchange (CME) Group has announced plans to introduce options on its Bitcoin Friday futures, set to begin trading on February 24, 2025, pending regulatory approval.

This new offering aims to cater to the growing interest in cryptocurrency derivatives among retail investors by providing cash-settled options that allow for more precise risk management.

Giovanni Vicioso, CME's global head of cryptocurrency products, stated that these options will enhance traders' ability to manage short-term Bitcoin (CRYPTO:BTC) price risks.

The Bitcoin Friday futures, launched in September 2024, are uniquely sized at one-fiftieth of a Bitcoin, making them more accessible than other retail-oriented futures products.

Since their launch, over 775,000 contracts have been traded, averaging about 9,700 contracts daily. Notably, 44% of these trades occurred during non-U.S. hours, indicating strong global interest.

The introduction of these options will complement CME's existing suite of physically settled options on Bitcoin and Ether futures, providing additional flexibility for investors.

With daily expirations from Monday through Friday, the new contracts are designed to offer a capital-efficient toolset for traders looking to adjust their Bitcoin exposure quickly.

The launch comes at a time when institutional interest in Bitcoin is on the rise, as companies and countries increasingly consider adding it to their reserves.

At the time of reporting, the Bitcoin (BTC) price was $104,902.