CME Group is preparing to launch a new “Micro Bitcoin” futures contract. According to a press release, the new cash-to-pay contract will be one tenth the size of a Bitcoin, awaiting regulatory review.
“The smaller size contract will provide market participants from institutions to sophisticated, active, individual traders with one more tool to hedge from spot Bitcoin price risks or execute Bitcoin trading strategies efficiently and cost-effectively. It will come with the features and benefits of CME Group’s standard Bitcoin futures. ”
When will the new product be released?
The new product will be on the market on May 3. CME Group launched the original Bitcoin futures product about three years ago. Earlier last month, it launched Ethereum futures. In 2021, an average of 13,800 CME Bitcoin futures contracts (equivalent to about 69,000 Bitcoins) are traded in the derivatives market every day.
Since the product’s launch on Feb. 8, an average of 767 CME Ethereum futures contracts (equivalent to 38,400 Ethereum) have been traded each day.
Tim McCourt, head of the CME Group global stock index and alternative investment products, made the following statement on the subject:
“Since the launch of our Bitcoin futures contract in 2017, we’ve seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders.
The introduction of micro Bitcoin futures directly responds to the demand for smaller contracts from a wide range of customers, and will provide participants with greater choice and sensitivity on how to transact and efficiently regulate Bitcoin futures at the CME Group. “