BTC: Micro futures meet traders’ demands. 2.5 times more sold than regular futures
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At the beginning of the month, the CME announced that it had launched new Micro BTC futures, which are small BTC futures contracts, 1/10th of a BTC in size, that are being made available primarily to small investors to provide them with precise exposure to the BTC market.
According to OKEx’s data, these contracts are proving so popular with investors that ETH futures, for example, are growing in volume, reaching more than $70 million in February. That is a figure that has more than quintupled in the course of a week and in the last week of April was a staggering $353 million.
Among other things, Micro BTC Futures are responding to the growing demand from cryptocurrency investors who want exposure to this market but with safer products than normal trading on exchanges.
Micro BTC futures numbers
So far this product has received over 2.5 times more trades than regular BTC futures precisely because these are small contracts that investors with all types of portfolios can access, all the while being sure that these are regulated products.
The CME BTC futures have seen 40 successful futures expirations, with over 8,000 accounts trading the contracts. Since the start of the year, 12,000 CME BTC futures contracts have been traded on average each day.
Since with normal futures contracts one would need around $60,000 to purchase a contract, the requirement for a Micro futures contract on BTC is $5,000, thus widening the level of accessibility.
Since much of the volume and liquidity has been traded by institutional investors, these new micro futures could open up purchases of BTC to a new demographic.
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