JP Morgan – CME Group’s Bitcoin Options May See Solid Response
JP Morgan Chase bank, the largest bank in the US with total assets of US$2.765 trillion, has stated that it anticipates good response to CME Group’s Bitcoin (BTC) options trading when it is launched for clients on January 13.
A news report by Bloomberg indicates that a group of analysts at JP Morgan Chase, headed by Nikolaos Panigirtzoglou, has disclosed that interest in CME’s prevailing Bitcoin futures had increased in the days ahead of the roll out.
On the shift in investor behavior, JPMorgan summarized:
“This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract.”
The developments are contrary to the December roll out of options by Bakkt, the competitor to CME. Volumes for the product offered by Bakkt continue to remain “rather small.” On the whole, interest in Bitcoin futures has conventionally taken longer time to gain traction.
It can be remembered that Bakkt’s roll out in September reflected CME’s launch in December 2017, both recording a prolonged period of low volume.
JP Morgan did not connect last week’s rise in futures volume to the volatility of BTC/USD pair, which gained 15% to record a high of $8,400, from a low of $7,300.
Some crypto enthusiasts have linked the performance of Bitcoin to the heightened tensions between the US and Iran.
In this regard, Sonny Singh, Chief Commercial Officer at cryptocurrency payment processor BitPay, stated that even a minute group of fresh investors entering into cryptocurrency sector by investing in Bitcoin was more than adequate to push the market in a particular direction.
Singh, considering the Middle-East crisis and involvement of enterprises such as Fidelity Investments, stated that he predicts Bitcoin to cross the all-time high of $20,000 in 2020.