CME Group to launch Micro Bitcoin futures

The Micro Bitcoin futures will offer traders another tool to hedge their spot Bitcoin price risk or execute Bitcoin trading strategies.

US derivatives exchange CME Group has made plans to launch new Micro Bitcoin futures on 3 May pending regulatory approval.

The new smaller-sized futures are one tenth of the size of one Bitcoin and are designed for institutions and sophisticated, active, or individual traders.

The exchange said the launch would expand the products available to traders, allowing them to hedge their spot Bitcoin price risk or execute Bitcoin trading strategies using a smaller sized contract that still harboured similar features to standard Bitcoin futures.

“Since the launch of our Bitcoin 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 Bitcoin 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 Bitcoin futures in a transparent and efficient manner at CME Group.”

CME said that in this year to date, 13,800 CME Bitcoin futures contracts – equivalent to 69,000 bitcoin – have traded on average each day on its exchange.

The Micro Bitcoin futures join a growing cryptocurrency offering at CME Group, including Bitcoin futures and options and its Ether futures which it launched last month.

Several exchanges have launched mini or micro product offerings in recent months as the market adapts to the increasing appetite from investors for more manageable and cost-effective contracts.

Most recent was Eurex, launching a set of micro futures based on European benchmark indices earlier this month. In February, Cboe Global Markets also confirmed plans to launch a set of Mini-Russell 2000 Index options.