According to the recent reports published by the Chicago Mercantile Exchange Group, Bitcoin is gaining popularity amongst the investors despite having a price drop in it and the investor’s interest is estimated to remain strong during the Q3 of the financial year 2019.
Bitcoin Future at CME are is going to rise as compared to Q3 2018
The CME Group recently has opted Twitter to socialize and state that the customer interest in CME Bitcoin’s future remains strong during the 3rd Quarter of the financial year 2019 along with daily open interest of about 4,600 contracts with rising of 61% as compared to the 3rd Quarter of the financial year 2018. All this rising scale is due to the strong interest of institutional investors.
More to discuss on Bitcoin price drop
Here the Open Interest rose to 4,629 contacts, where we have seen a rise from 2,873 in the 3rd Quarter of 2018. CME has clearly due to a 25% drop in Bitcoin price. However, according to the Cointelegraph, the CME is adding options to its Bitcoin futures contracts that are well planned to be formalized in the 1st quarter of the financial year 2020.
The McCourt, the global head of CME Group elaborates this situation and said: “Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk.”
McCourt explained that the trading has helped in boosting the Bitcoin futures, considering May as its recording month, have 34,000 futures contracts were traded that are worth $1.3 billion and equal to 1,70,000 BTC. Meanwhile, the institutional interest in CME Bitcoin is observed to be growing this summer 2019, and it is recorded with 56 large open interest holders that are reported in July.
Bitcoin price drop explained by SCMP report
If you talk about the SCMP report, it clearly shows that McCourt said that he does expect that the futures trading volume will come from the minors that are looking for more compromised exposures and not from the traders only. Adding to his gesture, he said: “While futures give you a one-for-one exposure, an option gives you varying strike-price levels and can give you either downside protection or upside exposure at a fraction of the underlying price.”
No plans to settle Bitcoin contracts by CME
This October, McCourt explained that the CME has no set plans to launch the Bitcoin contracts that are physically settled. Its ongoing bitcoin contracts are working in cash mode only. Moreover, McCourt added to the conversation, “The number one demand from customers has been for options on our futures “and this is since the launch of its future products had happened.
A brief explanation of this topic: This has indicated that the Bitcoin is having a scope of sustaining in the market and maintaining an investing stage for the investors whose interest to invest is not fluctuating.