CME Group To Offer Micro Bitcoin and Ethereum Options

 Micro Bitcoin and Ethereum Options to be Offered by CME Group

 

The world's largest futures and options exchange by daily volume will offer tiny Bitcoin and micro Ethereum options.

CME Group To Offer Micro Bitcoin and Ethereum Options 

Important Points to Remember

• On the 28th of this month, the CME will issue tiny Bitcoin and Ethereum options.
• These mini alternatives aim to make the market more accessible to those who want it on a much smaller scale.
• Micro Bitcoin and Ethereum futures contracts are already available for trade on the CME.

 

Starting March 28, 2022, the world's largest futures and options exchange by daily volume will provide micro Bitcoin and micro Ethereum options.

 

New Options Contracts that are a tenth of their normal size

 

Pending regulatory approval, the Chicago Mercantile Exchange (CME) will begin trading micro Bitcoin and micro Ethereum options contracts on March 28th.

 

According to a news release issued by the CME Group on Tuesday, the new micro options contracts will be one-tenth the size of their respective underlying tokens and will appeal to a wide spectrum of market players, including institutions and individual traders.

 

The offering will "help attract new investors and develop the crypto ecosystem," according to Rob Strebel, DRW's Head of Relationship Management.

 

 

CME has long sold BTC futures, and in March 2021, it expanded its offering to include ETH futures. The new instrument provides traders with a new option to gain exposure to the two most popular crypto assets.

Futures contracts are financial derivatives in which two parties agree to purchase or sell a certain item (typically a commodity) at a defined price and date in the future. 

They're frequently used to protect against losses caused by adverse price movements by hedging the price movement of the underlying asset.

 

Micro futures contracts function similarly to ordinary futures contracts, except that the CME Group uses a multiplier of one-tenth of that of a typical contract.

 Read more: Bitcoin Is About to Enter a New Uptrend

 

Long or short exposure to the underlying BTC or ETH will be possible with these contracts. Contracts will expire on a monthly and weekly basis.

CME Group's Global Head of Equity and FX Products, Tim McCourt, revealed:

 

At CME Group, we've worked closely with clients and the broader industry to build stable and liquid cryptocurrency futures and options markets. "Nearly 5.2 million micro Bitcoin and micro ether futures contracts have changed hands in less than a year.

 

The CME Group announced the debut of derivative products based on a cryptocurrency's fundamental value, notably ETH futures, in February 2021. The exchange began trading Micro ETH Futures later that year, on December 6th, 2021.