CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will expand its suite of crypto derivatives with the introduction of a new Micro BTC futures contract on May 3, pending regulatory review.
Micro BTC futures will be one-tenth the size of one BTC. The smaller-sized contract will provide market participants – from institutions to sophisticated, active, individual traders – with one more tool to hedge their spot BTC price risk or execute BTC trading strategies in an efficient, cost-effective way, all while retaining the features and benefits of CME Group’s standard BTC futures.
“Since the launch of our BTC futures contract in 2017, we have seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The introduction of Micro BTC 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 BTC futures in a transparent and efficient manner at CME Group.”
Micro BTC futures will join CME Group’s growing suite of cryptocurrency derivatives, including BTC futures and options and recently launched Ether futures. In 2021-to-date, 13,800 CME BTC futures contracts (equivalent to about 69,000 BTC) have traded on average each day. In addition, CME Ether futures have seen 767 contracts traded (equivalent to 38,400 ether) on average each day since launched on February 8.
The new contract will be cash-settled, based on the CME CF BTC Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of BTC. Micro BTC futures will be listed on and subject to the rules of CME.
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