CME Group does not plan to launch bitcoin futures with physical delivery

Despite the growing interest in cryptocurrencies from institutional investors, the Chicago Mercantile Exchange (CME) management does not plan to launch bitcoin futures with physical delivery.

As Tim McCourt, the head of the alternative investment products exchange, said, Bitcoin futures options will be launched at CME next year. But the launch of cryptocurrency futures with the physical delivery of the asset is not planned.

“Since we launched this product in 2017, customers are most of all asked to add options to our futures. It is very difficult to build a new futures market, but we succeeded in this, since in May alone, trading volumes exceeded $ 1.3 billion, ”McCourt said.

Cryptocurrency futures options will be used by technologies already working on the platform, an application matching engine and settlement mechanisms. Now the new product is undergoing internal testing.

“Institutional clients’ interest in Bitcoin is growing, but such an investor needs time to get used to the market and obtain the necessary permissions to use new tools,” McCourt said.

Recall that last week the trading of bitcoin futures with physical delivery started on the Bakkt platform, but the results of the first week of trading were much lower than expected.