August 17, 2022

CME Launches 0.1 BTC Cash-Settled Futures Contracts on May 3rd

2 min read

Smaller financiers would have the ability to benefit from CME’s controlled Bitcoin futures agreements since May 3rd, the organization announced earlier today. This would be possible in the form of so-called Micro BTC futures contracts, which will be one-tenth the size of one bitcoin.

Micro Bitcoin Futures Contracts on CME

Established over a century earlier, the Chicago Mercantile Exchange is amongst the largest international derivatives marketplaces and among the first-ever regulated establishments to show a pro-cryptocurrency method. Back in late 2017, the CME Group introduced cash-settled Bitcoin futures agreements.

Earlier today, the Chicago-based company announced a growth of its BTC-related portfolio by introducing cash-settled Micro Bitcoin futures agreements.

While the routine Bitcoin futures agreements have five bitcoins, the declaration described that the brand-new product will be considerably smaller sized– it will consist of one-tenth of the size of one BTC.

According to CME, this would enable a more diversified group of financiers to participate – –”from institutions to advanced, active, specific traders– with one more tool to hedge their spot bitcoin cost threat or carry out bitcoin trading strategies in an efficient, cost-efficient method, all while retaining the features and benefits of CME Group’s basic Bitcoin futures.”

“The introduction of Micro Bitcoin futures responds directly to require for smaller-sized agreements from a broad selection of clients and will provide even more choice and precision in how participants can trade managed Bitcoin futures in a transparent and efficient way at CME Group.” – – commented CME executive, Tim McCourt.

Trading Volumes on CME

Regardless of the slow start, the BTC futures on CME enjoyed a steady increase in 2019 and 2020, specifically following the COVID-19 pandemic. The trading volumes skyrocketed as rates began to increase late in 2015, which resulted in a new all-time high in January 2021, as CryptoPotato reported at the time.

Information from the analytics company Skew indicates that the volumes have actually decreased slightly because those days. Apart from a couple of brief day-to-day spikes when the trading activities surpassed $5 billion, the volumes have been well underneath that level.

However, it would be engaging to follow the trading volumes after the upcoming launch of the Micro BTC futures contracts on May 3rd, 2021.

CME Bitcoin Futures Volume. Source: Skew
CME Bitcoin Futures Volume. Source: Skew