The decision to launch this project stems from a growing customer demand for instruments to control access to Bitcoin. According to Tim McCourt, the head of equity index and alternative investment products at CME, the idea arose from a strong demand among traders in the Bitcoin futures market. The company believes that the launch of options will provide its clients with flexibility to work with cryptocurrency No. 1. Moreover, customers will receive an additional tool for hedging their Bitcoin price risk.

Tim McCourt pointed out that the new product was designed to help institutions and professional traders to control access to Bitcoin in the spot market, as well as hedge Bitcoin futures in an exchange environment.

Unlike futures, an option gives the buyer the right to buy or sell an asset at a set price on a certain date in the future. However, the option seller is not entitled to refuse to perform in accordance with the terms of the contract. In this case, additional risks are offset by the premium that the buyer pays the seller when concluding the contract.

The company has offered trading Bitcoin futures since the end of 2017. Opening options based on existing futures requires regulatory review, experts recall.