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CME Group, one of the leading crypto derivatives platforms, announced the inclusion of micro-Bitcoin futures to its crypto derivatives platform in a press release on Monday. The new micro-BTC futures will be available on CME later this year in May, subject to regulatory approval.
“Micro Bitcoin” futures to be Tenth the Size of on Bitcoin
The micro-Bitcoin futures are designed to give customers smaller portions with which to gamble on Bitcoin. According to the comment, each micro future would be one-tenth the size of one Bitcoin, “giving users one more tool to hedge their spot Bitcoin price danger.”
Furthermore, the micro-BTC futures would have similar functionality to the CME’s existing standard Bitcoin futures in a more cost-effective and stable manner.
According to Tim McCourt, CME Group’s Global Head of Stock Index and Alternative Investment Options, the new product was launched in response to persistent demand.
“demand for smaller-sized contracts from a broad array of clients.” The product targets both institutional and accredited investors and will provide a broader choice of instruments to hedge BTC price exposure using “regulated Bitcoin futures,” he added.
Since January, 13,800 CME Bitcoin futures contracts (or 69,000 BTC) have traded on average every day, with ETH contracts trailing at 767 contracts (or 38,000 ETH) each day.
The new micro-BTC futures will be traded on CME under the same rules as traditional Bitcoin futures. This means that the futures will also be settled in cash.
The open interest in CME Group Bitcoin futures is reportedly $2.90 billion. The futures exchange set an all-time record volume earlier this month, reporting $5 billion in daily volumes a day before Bitcoin formally broke the trillion-dollar market cap barrier.