The Chicago Mercantile Exchange (CME), one of the world's largest exchanges with the most derivatives variety, announced that it will launch "new Micro Bitcoin and Micro Ethereum futures contracts".
Since Micro Bitcoin and Micro Ethereum futures contracts will be sold at a price of one-tenth of the base token, they will appeal to a wide range of active trading institutional and individual investors. These smaller contracts will allow more investors to transact Bitcoin and Ethereum. CME will offer investors the opportunity to make long and short term investments with monthly or weekly expiry options. This contract option is offered to investors at certain intervals. The first application started on May 3, 2021.
Experts state that Micro Futures contracts offer a more flexible trading opportunity due to their smaller size, and that these contracts will increase liquidity.
Traders of all sizes will enter the market efficiently, said Tim McCourt, Global Head of Equities and FX Products at CME Group.
“Less than a year ago, approximately 5.2 million combined Micro Bitcoin and Micro Ether futures contracts changed hands. Based on the strength and liquidity of the underlying contracts, our micro-size options will enable traders of all sizes to enter the market efficiently.”
Joshua Lim, Head of Derivatives at Genesis Global Trading, said;
"Micro options provide the targeted risk exposure that investors seek."
Rob Strebel, Head of Relationship Management at DRW, said that the move will ensure the growth of the crypto market.
“As we work with our institutional investors, we recognize that there is a strong demand for exposure to secure and regulated cryptoassets. This innovation from CME Group provides welcome flexibility in the listed options space and we expect these products to help attract new investors and grow crypto.”
Finally, Akuna Digital Assets CEO John Harris touched upon the issue with the following statement.
“We think the options in these contracts will open up the market to new participants who prefer more detailed sizing, as well as giving existing market participants more flexibility in seeking low-cost risk.”