CME Group to launch Micro Bitcoin futures

Chicago Mercantile Exchange (CME Group) announced the launch on May 3 of Micro Bitcoin futures, a new product tied to Bitcoin, awaiting regulator approval.

The new futures contract will be one-tenth of a bitcoin. CME believes that the smaller-size contract will allow hedging price risks on the spot market and enable trading strategies in the leading cryptocurrency in an efficient and cost-effective manner.

CME managing director Tim McCourt noted that demand for bitcoin futures has grown since the contracts were launched in 2017, particularly from institutional traders.

“The introduction of Micro Bitcoin futures directly responds to clients’ need for smaller-size contracts and will offer greater choice and precision in trading regulated crypto derivatives,” he said.

Settlement of the futures will be cash-settled based on the CME CF Bitcoin Reference Rate.

Earlier in the year, the exchange opened trading of bitcoin options. On February 8 the platform added Ethereum, trading volume on the first day exceeded $30 million.