CME Group declared that it would launch Solana (SOL) and XRP futures options contracts by October 13. Which is an expansion to its already existing crypto futures products. These are new products in which there will be standard and micro contracts with weekly expiries so that institutional traders have more freedom and control over it.
Product Expansion is Pushed by Liquidity Spike
The move comes after the two tokens experienced an upsurge in futures trading volumes. More than half million SOL futures contracts have been traded since March- with a value of 22.3billion. First launched in May, XRP futures have been traded 370,000+ times. Furthermore,the open interest has recently been almost equal to $942 million. This increase is an indication of a high market foundation to back options.
Institutional Player Hedging Tools
Options provide more accurate hedging or speculation. Unlike futures that have the right but not the obligation to purchase or sell. According to Giovanni Vicioso of CME the new contracts are based on a strong growth and growing liquidity. The market makers such as Cumberland and FalconX are on the queue list to make the roll out easy.
Institutional Access to Continue to Grow
FalconX Joshua Lim highlighted the increasing demand of risk management instruments in digital asset treasury systems and crypto investment vehicles. Solana and XRP are at a new stage of institutional availability with regulated infrastructure provided by CME. Not only limited to Bitcoin and Ethereum
