CME Group launches micro-sized Bitcoin and other options As promised, one of the biggest derivatives trading platforms has released options on Micro Bitcoin futures and Micro Ether futures. The main reason for the launch was cited by the company as growing investor demand.
- CryptoPotato reported earlier in March CME Group’s intentions to launch options on Micro Bitcoin and Micro Ether futures. These products are a tenth as exposed to the underlying asset making them more attractive alternatives for individual investors.
- Futures contracts require that investors sell them by a certain date. Options allow investors the option to purchase or sell at a specified price at any given time, but they are not required to do so.
- CME Group announced on March 28 that these products have officially gone live; thus, the firm expanded its “suite of cryptocurrency derivatives offerings.” The firm’s Global Head of Equity and FX Products — Tim McCourt — commented:
“The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures. These contracts will offer a wide range of market participants — from institutions to sophisticated, active, individual traders — greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization.”
- On the other hand, Darek Devens, Senior Portfolio Manager at Neuberger Berman, said his company expects that these products will be appealing to “over-the-counter cryptocurrency options market participants.” He also believes they will facilitate “increased market liquidity and price stability across cryptocurrency futures and options in the US-listed markets.”
- With the aforementioned launch, CME Group’s total micro products exceed 20. According to the company, they have “traded more than 1.2 billion contracts since their introduction.”
- CME Group is one of the most open-minded and regulated global exchanges for cryptocurrency services. It added BTC futures contracts almost five years ago.
- Most recently, the company behind Google — the Internet mogul Alphabet — invested $1 billion in the Chicago Mercantile Exchange.