Micro Bitcoin Futures Surpass 1 Million Contracts Traded
CME Group announced the trading of Micro Bitcoin futures surpassed 1 million contracts on June 25, 2021. This contract, launched just over a month prior, allows participants to hedge bitcoin price risk efficiently. Tim McCourt noted strong demand from both institutions and individual traders. Brooks Dudley highlighted higher-than-expected institutional volume, confirming the market's readiness for smaller contracts. Martin Franchi emphasized the opportunity for retail traders to diversify their crypto strategies. Micro Bitcoin futures are cash-settled based on the CME CF Bitcoin Reference Rate.
- Micro Bitcoin futures volume exceeded 1 million contracts in under two months.
- Strong demand from both institutional and retail traders suggests market readiness.
- Cash-settled contracts based on CME CF Bitcoin Reference Rate provide reliability.
- None.
CHICAGO, June 25, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, announced that Micro Bitcoin futures volume surpassed 1 million contracts on Friday, June 25.
"We continue to see strong customer demand and rapid uptake in our new Micro Bitcoin futures contract since their introduction a little more than a month ago," said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. "At one-tenth of one bitcoin, this micro-sized contact is designed to provide market participants – from institutions to smaller, sophisticated, active traders – with another tool to hedge their spot bitcoin price risk or execute bitcoin trading strategies in an efficient, cost-effective and easily accessible way.
"This is a tremendous achievement for a contract that was just launched seven weeks ago," said Brooks Dudley, Global Head of Digital Assets at ED&F Man Capital Markets. "We've seen more institutional volume than we anticipated, which shows that the timing was right for a smaller bitcoin contract."
"The addition of Micro Bitcoin futures has further opened the door for active retail traders across asset classes to enter the futures marketplace," said Martin Franchi, CEO of NinjaTrader Group, LLC. "We have seen the fast rise in popularity of this new micro contract among the NinjaTrader user community correlate with growing demand from cryptocurrency traders interested in the opportunity to diversify and leverage professional tools in their trading."
Micro Bitcoin futures are cash-settled to 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.
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SOURCE CME Group
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