CME Group, world's largest derivatives marketplace, to offer micro bitcoin futures in May

  • CME Group announced it is expanding its suite of crypto offerings with micro bitcoin futures.
  • The micro bitcoin futures of CME will be one-tenth the size of one bitcoin.
  • It will start trading on May 3, pending regulatory review. 
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CME Group, the world’s largest derivatives marketplace, announced that it is expanding its suite of crypto offerings with micro bitcoin futures as the popular coin gains traction from both institutional to retail investors, propelling it to record highs.

The micro bitcoin futures of CME, or Chicago Mercantile Exchange, will be one-tenth the size of one bitcoin and will start trading on May 3, pending regulatory review. 

The smaller-sized contract, which can be settled on a cash basis, will allow investors to trade bitcoin in an efficient and cost-effective way on fractional units. Other cryptocurrency exchanges that are less regulated already offer bitcoin futures.

“The introduction of micro bitcoin futures … will offer even more choice and precision in how participants can trade regulated bitcoin futures in a transparent and efficient manner at CME Group,” Tim McCourt, CME Group global head of equity index and alternative investment products, said in a statement. 

CME Group launched a bitcoin futures contract in 2017 and has seen steady market participation among institutional traders. Micro bitcoin futures will join CME Group’s other offerings, including the recently launched ether futures.

“This will serve as a great function,” John Wu, president at AVA Labs, told Insider. ” It will increase participation, subsequently increasing liquidity, and, will provide hedging opportunities.”

Micro bitcoin futures will be listed on and subject to the rules of CME.  

This far, CME said it has seen 13,800 bitcoin futures contracts (equivalent to around 69,000 bitcoin) and 767 ether futures contracts traded (equivalent to 38,400 ether) on average per day.

CME rival Chicago Board Options Exchange was the first to introduce the derivatives contract in 2017 but has since stopped trading bitcoin futures.

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