BAKKT, CME & Bitfinex Are Launching Bitcoin Options This Winter
It seems that Bitcoin is becoming more and more like traditional Wall Street asset. Bakkt launched the much-anticipated Bitcoin Futures last September. While Bitcoin ETF's have been struck down time & time again, it seems that a different financial derivative will launch soon. That derivative is Bitcoin Options.
Three different companies are rushing to launch a Bitcoin Options market. That includes Bakkt, The Chicago Mercantile Exchange (CME), & Bitfinex. Bakkt will likely launch first with an expected launch of December 2019. The CME & Bitfinex are anticipated to launch their Bitcoin Optons in January 2020.
Bitcoin Options Bullish or Bearish?
Options trading is generally used for hedging or financial speculation.
While Bitfinex's Bitcoin Options might be great, they do not have the established presence of the CME or Bakkt, which was founded by ICE. Both Bakkt's parent company ICE & CME have decades of experience in running financial trading markets.
There were pumps both when Bakkt & CME announced Bitcoin Futures and prior to their launch. Following Bakkt's Bitcoin Futures launch, Bitcoin fell beneath $10,000 and has yet to recover. It is plausible that Bitcoin dropped following the launch of Bakkt futures because futures gave traders the possibility to short Bitcoin.
The market has ether gone down or sideways since three different organizations announced Bitcoin Options. Seeing this, the launch of Bitcoin Options can only be seen as something that will have minimal affect on the markets or bullish.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado