CME Group, one of the world’s largest derivatives marketplaces, has announced that it will be offering daily expiration of Bitcoin contracts throughout the week. This move is aimed at providing more flexibility to traders who want to hedge their Bitcoin positions or speculate on the cryptocurrency’s price movements.
The new contracts will be available for trading on CME’s Globex electronic trading platform, and will be settled in cash. The contracts will be based on the CME CF Bitcoin Reference Rate (BRR), which is a daily reference rate of the US dollar price of Bitcoin.
The daily expiration of Bitcoin contracts is a significant development for the cryptocurrency market, as it provides traders with more opportunities to trade Bitcoin futures. Previously, CME only offered monthly Bitcoin futures contracts, which meant that traders had to wait for a month before they could roll over their positions or take new positions.
With the new daily expiration of Bitcoin contracts, traders can now take advantage of short-term price movements in Bitcoin, and adjust their positions accordingly. This is particularly useful for traders who want to hedge their Bitcoin holdings against short-term price fluctuations.
The daily expiration of Bitcoin contracts also provides more liquidity to the Bitcoin futures market. This is because traders can now enter and exit positions more frequently, which increases trading volume and reduces bid-ask spreads.
CME’s move to offer daily expiration of Bitcoin contracts is also a sign of growing institutional interest in the cryptocurrency market. As more institutional investors enter the market, they are demanding more sophisticated trading tools and products. CME’s decision to offer daily expiration of Bitcoin contracts is a response to this demand.
Overall, the daily expiration of Bitcoin contracts is a positive development for the cryptocurrency market. It provides traders with more flexibility and liquidity, and signals growing institutional interest in the market. As the cryptocurrency market continues to mature, we can expect to see more innovative products and services being offered by established financial institutions like CME Group.
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- Source: https://zephyrnet.com/cme-group-to-allow-bitcoin-contracts-to-expire-every-day-of-the-week-live-bitcoin-news/