CME Group set to launch Micro Bitcoin futures

The Chicago Mercantile Exchange, or CME, has unveiled plans to launch a brand new Bitcoin (BTC) derivatives product that may allow merchants to speculate on fractional items of the flagship digital forex.

CME Group’s Micro Bitcoin futures contract, which is set to launch May three pending regulatory approval, can be value 0.1 BTC. The smaller contract dimension gives market contributors with a further software to hedge their Bitcoin value danger, CME said Tuesday. CME’s current Bitcoin contract unit is 5 BTC.

Tim McCourt, CME Group’s international head of fairness index and various funding merchandise, explaine:

“The introduction of Micro Bitcoin futures responds directly to demand for smaller-sized contracts from a broad array of clients and will offer even more choice and precision in how participants can trade regulated Bitcoin futures in a transparent and efficient manner at CME Group.”

CME launched its Bitcoin futures contract in December 2017. The Chicago Board Options Exchange, Its bigger crosstown rival, was the primary to introduce the derivatives contract throughout the identical month however has since abandoned Bitcoin futures altogether.

CME has famous a gradual uptick in crypto derivatives buying and selling because the first Bitcoin futures contract launched greater than three years in the past. As Cointelegraph beforehand reported, common each day commerce volumes for CME Bitcoin futures jumped 57% in January. Interest is probably going to speed up because the Bitcoin bull market brings new traders into the fold.

There’s additionally proof that the broader crypto derivatives market is heating up. In December 2020, crypto derivatives trades were valued at more than $1.3 trillion, accounting for 55% of the general market, in accordance to CoinMarketCap.