JPMorgan Is Closely Exploring Bitcoin Options, 74-Page Report Shows

A new viral report is showing that the leading global financial services firm and one of the largest banking institutions in the world, JPMorgan is closely exploring Bitcoin options. As we can see from the latest Bitcoin news, the situation on the market is not good but the BTC derivatives are doing well.

The lifetime aggregate volume on BitMEX’s XBT swap future recently surmounted $2 trillion and the CME has been registering hundreds of millions of dollars worth of Bitcoin futures trades each and every day.

The growth in derivatives markets has not gone unnoticed. We can see that JPMorgan is closely exploring Bitcoin options after releasing an extensive cryptocurrency-focused report in which it revealed that it is keeping a close eye on the derivatives markets.

If you were around in 2017 and 2018, you probably know that there were reports from mainstream media revealing that JPMorgan’s CEO, Jamie Dimon, was not the biggest fan of Bitcoin. In interviews, he lambasted the dominant coin and called it a “fraud” that global governments were going to “crush.”

The sentiment has not stopped JP Morgan from delving into cryptocurrency and blockchain, running its own Quorum blockchain and releasing reports on the developments in Bitcoin. However, the recent report shines a light on the financial services giant. Written by “Global Research” team at JP Morgan, it shows that there is a “genuine demand for non-linear institutional trading products in crypto markets.”

What JPMorgan also indicated is that this “genuine demand” for Bitcoin comes via the trading products and is likely driven from institutions. Analysts and traders were quick to see this and post on social media.

Wow, @jpmorgan is keeping a close eye on the Bitcoin options market, and notes @DeribitExchange rapid growth "suggests that there is genuine demand for non-linear institutional trading products in crypto markets" https://t.co/stgZQlEYyt pic.twitter.com/wrIvRVDfxJ

— Su Zhu (@zhusu) February 26, 2020

Optimists right now are positive on the fact that JPMorgan is closely exploring Bitcoin. They know that options give the buyer the right to buy or sell an asset at a specified price on a specified date – something that makes them very popular. The derivatives are most often used by traders to hedge risk.

As the cryptonews also show, JPMorgan’s observation of “genuine demand” means that the company is prepared to step into trading Bitcoin, especially considering Jamie Dimon’s disposition towards cryptocurrency. However, even keeping a close eye on the space is not a bad sign.