CME Group is one of the world’s major derivatives exchanges. It surpassed Binance to become the largest Bitcoin futures market across the globe. CME Group achieved this feat in October. It now plans to launch Micro-Sized Bitcoin and Ether Options.
The tentative date of launching the future is March 28, subject to necessary approvals from regulators.
About Micro Bitcoin And Micro Ether Options
March 2022 may witness the launch of Micro-Sized Bitcoin and Ether Options by CME Group. It will depend on the approvals that the company receives from regulators. If approved, it will open another door for the company while allowing the traders to mark their productive contribution.
As per the details shared, the Bitcoin and Ether options will be one-tenth the size of their respective tokens. The launch will give participants more ways to manage their exposure to the biggest Cryptocurrency in terms of their market capitalization.
The contracts that are to be launched soon are expected to complement the existing Bitcoin options contract that was established in 2020 and is sized at five Bitcoins.
Participants who will get access to managing their exposure include institutions and traders, who may be sophisticated, active, and individual. In addition to being able to manage their exposure to Bitcoin and Ethereum, participants will be able to share their long-term or short-term opinions.
Tim McCourt, the Global Head of Equity & FX Products at CME Group, said that the company had worked closely with its clients and the industry to establish cryptocurrency futures and options markets that are robust and liquid in nature.
He also stated a recent success of CME Group where the company had registered nearly 5.2 million Micro Bitcoin and Micro Ether futures contracts changing hands. Tim McCourt added that the micro-sized options would allow every trader to hedge market-moving events with better flexibility and higher precision.
He concluded by saying that they were built on the strength and liquidity of the underlying contracts, allowing clients to fine-tune their market exposure of Cryptocurrency.
CME Group launched Micro Bitcoin Futures in May 2021. This was followed by the launch of Ether Contracts in December. The company is now all set to add the new product to its suite of Micro Bitcoin and Micro Ether Futures.
The company took this opportunity to announce that it had witnessed an average daily volume of 20.5 million contracts in the fourth quarter of 2021. This value is an increase of 26% as compared to its figure for the fourth quarter of 2020.
One thing to remember about Options is that they give the trader only the right to sell or purchase an asset. It can be at a predetermined rate during the time of the contract’s life. The buyer of such a Future remains obligated to acquire an asset on the set date unless the position has been closed.