CME Group launches bitcoin microfutures trading

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CME Group has announced the launch of trading in bitcoin microfutures contracts. This tool could attract more retail traders to BTC.

Big benefits of small contracts
Chicago-based commodities exchange CME Group, one of the world’s leading derivatives trading venues, announced an upcoming event back in late March. Today, May 3, the exchange launched a new BTC-based trading instrument – bitcoin microfutures contracts.

BTC microfutures will expand the range of crypto derivatives offered by the exchange to its clients. The size of one such contract will be about a tenth of a bitcoin.

Futures & Options Trading for Risk Management - CME Group

CME Group expects that such small contracts will help hedge risks more efficiently and cost-effectively for various market participants – from institutional investors to experienced active traders. All of them will be able to fine-tune the level of risk when investing in bitcoin and improve their trading strategies, Tim McCourt of CME Group management emphasized when commenting on the new product.

For all tastes and colors…
The new tool is expected to make bitcoin derivatives more accessible to a wider range of traders. Thus, it could attract new retail buyers with more modest options than institutional buyers.

“Smaller contracts will allow traders at any level, from institutional to retail traders, to interact with bitcoin or hedge their spot BTC positions,” commented Daniel Raiba, CEO of online trading platform E*TRADE Financial.

Have you ever traded cryptocurrency futures? Share your opinion in the comments and join the discussion on our Telegram Channel!

CME takes the plunge into the crypto space
Thus, CME Group continues to expand its presence in the crypto market. The company first announced its plans to launch bitcoin derivatives back in October 2019. This is how it decided to respond to its clients’ increased interest in crypto derivatives.

CME is currently one of the largest platforms for trading bitcoin futures. By December 2020, its daily trading volumes for BTC futures contracts averaged $880 million. In early 2021, the exchange reported daily trading volumes of about 69,000 BTC in such contracts.

In addition, trading in Ether futures also began on the platform in February.

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