CME Group Announces Launch of Micro Bitcoin Futures

Rhea-AI Summary

CME Group has launched Micro Bitcoin futures, expanding its crypto derivatives offerings. This new contract is one-tenth the size of a standard bitcoin, providing a cost-effective way for diverse market participants to manage bitcoin exposure. As cryptocurrency popularity rises, the Micro Bitcoin futures will address high costs and regulatory concerns in cryptocurrency investments. The new product aims to cater to institutional and retail investors, enhancing trading strategies while maintaining market integrity.

Positive

• Launch of Micro Bitcoin futures allows broader market participation.
• Addresses investor demand for lower-cost cryptocurrency trading options.
• Enhances trading precision for both institutional and retail investors.

Negative

• None.

CHICAGO, May 3, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today launched Micro Bitcoin futures, further expanding its suite of crypto derivatives offerings.

"We are pleased to introduce this new contract at a time when we continue to see consistent growth of liquidity and participation in our crypto futures and options," said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. "At one-tenth the size of one bitcoin, Micro Bitcoin futures will provide an efficient, cost-effective way for a broad array of market participants – from institutions to sophisticated, active traders – to fine-tune their bitcoin exposure and enhance their trading strategies, all while retaining the benefits of CME Group's standard Bitcoin futures."

"Cryptocurrency has never been more popular than it is today, and we are really happy to support the launch of the Micro Bitcoin futures contract," said Steven Sanders, Executive Vice President, Marketing and Product Development at Interactive Brokers. "This smaller sized contract will enable more of our sophisticated, individual clients to participate in the market, and will allow our institutional clients to more precisely manage their bitcoin exposure."

"The launch of Micro Bitcoin futures addresses two of the biggest issues when it comes to investing in cryptocurrency, namely the high cost and the desire to engage within a regulated environment," said J.B. Mackenzie, Managing Director at TD Ameritrade Futures and Forex, LLC. "The demand from self-directed active traders for offerings such as this is high, and we're pleased to add Micro Bitcoin futures to the lineup of futures products available at TD Ameritrade."

"Offering Micro Bitcoin futures allows us to provide our customers with even more choice and precision in how they trade Bitcoin futures," said Daniel Ryba, Executive Director of futures at E*TRADE Financial. "The smaller contract size enables traders of all sizes – from institutions to active retail traders – to get exposure to bitcoin prices, or hedge their spot bitcoin positions. We are excited to support this product."

"As a platform for retail and institutional investors, we're excited to offer TradeStation Securities, Inc. ("TradeStation") clients Micro Bitcoin futures. By lowering the barrier of entry, more traders will be able to gain exposure to bitcoin," said John Bartleman, President of TradeStation Group, Inc., TradeStation's parent company. "We are day-one supporters of CME's Micro Bitcoin futures product, and we're looking forward to our continued relationship that allows us to prioritize our clients' access to cryptocurrencies through futures."

"The Micro Bitcoin futures meet a real market need for more granular exposure on Bitcoin futures," said Joshua Lim, Head of Derivatives, Genesis Trading. "More investors will be able to access and trade this market, and options liquidity providers like Genesis will be able to delta hedge with more precision."

CME Micro Bitcoin futures are cash-settled, based on the CME CF Bitcoin Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Micro Bitcoin futures are listed on and subject to the rules of CME.  

For more information on this product, please see: www.cmegroup.com/microbitcoin.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners. 

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SOURCE CME Group

FAQ

What is the significance of CME's launch of Micro Bitcoin futures?

CME's Micro Bitcoin futures provide a way for a wider range of investors to participate in the cryptocurrency market with lower costs and greater precision in managing bitcoin exposure.

How do Micro Bitcoin futures compare to standard Bitcoin futures?

Micro Bitcoin futures are one-tenth the size of standard Bitcoin futures, making them more accessible and cost-effective for diverse market participants.

When did CME Group announce the launch of Micro Bitcoin futures?

CME Group announced the launch of Micro Bitcoin futures on May 3, 2021.

What is the trading mechanism for Micro Bitcoin futures?

Micro Bitcoin futures are cash-settled and based on the CME CF Bitcoin Reference Rate, which reflects the U.S. dollar price of bitcoin.

Who can benefit from trading Micro Bitcoin futures?

Both institutional investors and sophisticated retail traders can benefit from the increased accessibility and precision in trading that Micro Bitcoin futures offer.