Options on bitcoin futures from Chicago Mercantile Exchange (CME) got off to a good start on Monday, seeing trading volume reach 55 contracts in the opening session.

That amounts to a notional volume of about $2.3 million or 275 bitcoin, with each contract worth 5 BTC. Also, only call options traded on the first day, as noted by Skew.com, provider of data analytics for Bitcoin and Ether derivatives.

An option contract is a derivative based on the value of an underlying instrument that provides the right, but not the obligation, to buy or sell the specified amount of the underlying on or before the expiration date. A call option gives the holder a right to buy, while the put option gives the holder the right to sell.

The growth of bitcoin options is widely being touted as the move in the right direction for the cryptocurrency, as it may boost institutional participation and help bitcoin evolve into a mature asset class.

Institutional trading platform Bakkt, a subsidiary of Intercontinental Exchange, launched bitcoin options on Dec. 9, with very little action on the first day. CME’s launch-day trading volume was nearly double the average daily volume seen on Bakkt since then.

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Author: Omkar Godbole


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