CME Bitcoin (BTC) Options Trades $2.3M On First Day, BTC Price 6% Up For New 2-Month High

CME Bitcoin (BTC) Options Trades $2.3M On First Day, BTC Price 6% Up For New 2-Month High

CME Bitcoin options have made their debut and BTC prices rally.

Bitcoin has hit a two-month high price, the first time since it reached such levels in November 2019. The crypto market is trading north even as a positive CME BTC Options debut continues to excite the market.

Bitcoin Price Rallies To 2-Month High

Bitcoin (BTC) has rallied over 6% in the last 24 hours, notching a two-month high of $8,616, according to bitcoin price data on Coindesk. The top crypto is recording this huge spike in the wake of CME Group’s launch of the highly anticipated options on Bitcoin (BTC) Futures.

The rest of the market has also rallied north, some altcoins registering double-digit gains. Ether (ETH) is 6.60% up, XRP 4.72%, Litecoin (LTC) 11% and Bitcoin Cash 12.3%. Privacy coin Dash has jumped over 26% in the last 24 hours.

CME BTC Options Makes Debut

On its debut, CME’s product attracted a total of 55 contracts. Each of the options contracts corresponds to 5 BTC, meaning public trading accounted for 275 bitcoins on the day.

As per the current bitcoin prices, traders managed to gobble up $2.34 million worth of bitcoin.

According to data posted on the official CME website, the launch of the Bitcoin (BTC) futures options went live as expected. The rollout follows the company’s success at getting the regulatory approval needed to launch the derivative product.

The Chicago-based derivatives marketplace has said that the launch of the options on bitcoin futures is in response to a growing interest in cryptocurrencies. There has also been increased demand from customers “for tools to manage bitcoin exposure,” the platform posted on its website.

Bakkt rolled out its bitcoin (USD) monthly options product last month and on January 11, crypto-focused platform FTX launched its options on Bitcoin futures.

Last week, JP Morgan strategists noted that despite Bakkt’s less than impressive volumes, the entry of CME Group in the Bitcoin options market was likely to be “a game-changer.”

Notably, it is FTX that has data showing that its options volume trounces that of CME. According to the company, traders have over the last 24 hours gobbled up contracts totaling over 3,600 BTC or well over $30 million worth of bitcoin.

Options on Bitcoin (BTC) points to more exposure to Bitcoin

CME Group first launched its bitcoin futures product in December 2017, days after rival Cboe had become the first U.S. regulated exchange to do so. The moves came as the crypto market rallied to see Bitcoin’s price hit an all-time high of $20k.

BTC prices dipped in the days after Bakkt launched its BTC futures product. However, analysts have observed that the launch of options on Bitcoin (BTC) futures could be herald more positivity. Some have even pointed to the options market as capable of pushing us one step forward in the overall exposure to Bitcoin.

Bakkt saw its Bitcoin Futures volumes spike on Monday as 2,907 contracts worth $19.94 million were traded. Open interest also rose, now 7% up on the previous session to stand at $9.58 million. BitMEX and Deribit have also recorded increased volumes over the past few weeks.

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