CME Traders Prefer Cash-Settled Bitcoin Products

Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: BENJAMIN PIRUS, reproduced by Odaily with authorization.

Editor's Note: This article comes from

Cointelegraph Chinese (ID: CointelegraphChina)

, Author: BENJAMIN PIRUS, reproduced by Odaily with authorization.

Traders prefer cash-settled bitcoin trades over physical bitcoin (BTC) Supported products.

Asked why CME chose to launch a cash-settled bitcoin futures trading product in 2017, McCourt told Cointelegraph in an email: “So far, clients have expressed a clear preference for cash-settled products. preferences and priorities."

CME Launches Bitcoin Futures After Its Pricing Metric

CME launched Bitcoin futures trading in 2017 based on the CF Bitcoin Reference Rate (BRR) and Bitcoin Real-Time Index (RTI) launched by its own exchange in 2016. Essentially, the two metrics show the average price at which bitcoin is trading across multiple major exchanges to give the industry more clarity on pricing bitcoin, McCourt said.

McCourt explained that with the cash-backed CME bitcoin futures product, clients can trade the price of bitcoin without owning the asset. McCourt added:

“CME’s cash settlement mechanism is based on prices determined by several bitcoin exchanges, which is very similar to the settlement mechanism of the S&P 500 Index based on prices determined by a centralized auction market.”

secondary title

CME's Product Catering Strategy for Clients