CME Launching New Micro Bitcoin Futures Contract – Here’s When it Starts Trading

CME Group is preparing to launch a new “Micro Bitcoin” futures contract.

The new cash-settled contract, which is pending regulatory review, will be one-tenth the size of one Bitcoin, according to a press release.

Explains the derivatives marketplace,

“The smaller-sized contract will provide market participants – from institutions to sophisticated, active, individual traders – with one more tool to hedge their spot Bitcoin price risk or execute Bitcoin trading strategies in an efficient, cost-effective way, all while retaining the features and benefits of CME Group’s standard Bitcoin futures.”

The new product rolls out on May 3rd. CME Group launched its original Bitcoin futures product roughly three years ago and rolled out Ethereum futures early last month. Year to date in 2021, an average of 13,800 CME Bitcoin futures contracts (equivalent to about 69,000 Bitcoin) have traded on the derivatives marketplace each day.

Since the product’s launch on February 8th, there has also been been an average of 767 CME Ethereum futures contracts traded (equivalent to 38,400 Ethereum) each day.

Says Tim McCourt, CME Group global head of equity index and alternative investment products,

“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.

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.”