BitMEX Acquisition Sparks Interest in Bitcoin Options Markets
Cryptocurrency derivatives platform OSL Group, a subsidiary of BC Group, has announced plans to launch a Bitcoin option product following its recent acquisition of BitMEX’s over-the-counter (OTC) business and trading operations. This development is expected to increase liquidity in the market and attract institutional investors to the options space.
Bitcoin Options and Futures Trading
Options and futures contracts allow investors to speculate on the price movement of Bitcoin without actually holding the cryptocurrency. While options provide the right, but not the obligation, to buy or sell Bitcoin at a predetermined price, futures contracts require the holder to purchase or sell the underlying asset at the specified price on the expiration date.
Opening of New Markets with CME Options
The launch of CME Bitcoin options by CME Group in December 2020 marked a significant milestone in institutional adoption of the asset. However, this was the only option product on this exchange and came with liquidity issues among these market participants.
Understanding the Acquisition Implications
The acquisition by OSL indicates the growing interest in Bitcoin options from institutional investors, according to CEO Wayne Trench. The expansion by OSL into option markets mirrors recent participation trends, as institutional investors are inclined towards larger choices of investing alternatives.
Rise in Bitcoin Options and Future Trading Activity
Following a significant decline due to the major downturn in the cryptocurrency markets around late 2022, the transaction figure associated with this segment showed continuous development. The current popularity of trading in cryptocurrency futures as other applications are now available for exchange for another benefit added to this trend.
