'High anticipation' for CME bitcoin options launch

Discussion in 'Cryptocurrencies' started by ajacobson, Jan 13, 2020.

  1. ajacobson



    (Bloomberg) — Institutional interest in Bitcoin-related contracts appears to be building and market measures indicate high anticipation of the launch of CME Group Inc. options today, according to JPMorgan Chase & Co.

    While a consortium known as Bakkt, which includes New York Stock Exchange parent Intercontinental Exchange Inc., began offering options last month, volumes and open interest have been “rather small,” strategists led by Nikolaos Panigirtzoglou wrote in a note Jan. 10. Given the dominance of CME in trading Bitcoin futures on regulated exchanges, this new offering may change things, they said.

    CME expands bitcoin footprint

    CME's Duffy extends contract, gets bigger bonus

    “There has been a step increase in the activity of the underlying CME futures contract” over the past few days, Panigirtzoglou wrote, noting that open interest has increased 69% from year-end, and that the number of large open-interest holders has grown. “This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract.”

    Introduction of new Bitcoin contracts has a mixed track record. At times it has appeared to be a drag on the price, such as when ICE debuted its new futures contract in September. And the price peak around $19,000 in December 2017 occurred just as CME and Cboe Global Markets Inc. launched futures on the world’s largest cryptocurrency.

    Bitcoin was up 2.1% to $8,209.42 as of 11 a.m. in Hong Kong, according to Bitstamp pricing, near its highest levels since mid-November.

    Separately, Bitcoin’s intrinsic value has been rising, but remains below the market price following a significant divergence in the middle of last year, the report said. JPMorgan calculates intrinsic value by treating Bitcoin as a commodity and looking at the marginal cost of production including computational power employed and cost of electricity.

    “The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10%,” Panigirtzoglou wrote. But “the gap has not yet fully closed, suggesting some downside risk remains.”
    johnarb likes this.
  2. IAlwaysWin


    If this happens, I'll be buying up some coins.
    johnarb likes this.
  3. maxinger


    I doubt the anticipation will be high.

    Bitcoin futures volume has been pathetic.
    so its options volume will be equally pathetic.
    SouthbeachCTA likes this.
  4. bln


    Volume is low for all new product offerings. It take time to build a user base. This is nothing strange.
  5. LOL! You're kidding, right?

    BTC has ZERO intrinsic value.
    SouthbeachCTA and maxinger like this.
  6. maxinger


    Because cryptocurrency is one of the few things in this universe why supply can be infinity.
  7. johnarb


    Bitcoin's value is easy to determine as there are many sources to get it in real-time (CME, Bakkt, Bloomberg, etc), but if you listen to some ET people, they will try to convince you it's worthless, a bubble, blah blah blah, for whatever personal reasons they may have.

  8. tsznecki


    Is this even a fucking sentence?

    Assuming it is, explain how you are going to get 51% hash power to change BTC's supply?

    That's right, none of you can. Intrinsic value? LOL what is this amateur day? Gold like your IQ scores have no intrinsic either.
  9. ajacobson