- CME Group has launched micro bitcoin and ether options.
- Micro bitcoin and micro ether are 1/10 the size of one bitcoin and ether respectively.
- These options should provide traders with ways to manage their exposure to the top assets.
On Monday, CME Group announced that their options on micro bitcoin and micro ether futures are now available. According to the company, this is to help people “manage cryptocurrency price risk.” CME’s Micro Bitcoin futures (MBT) and Micro Ether futures (MET) are both 1/10 the size of one BTC and one ETH respectively.
CME Group Inc. (Chicago Mercantile Exchange) is the largest financial derivatives exchange and trades in asset classes. These include agricultural products, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures. Also, the new offering will provide additional ways to manage traders’ and investors’ exposure to top cryptocurrencies.
According to the data from slickcharts.com, Bitcoin’s market cap is over $852 billion and Ethereum is over $392 billion.
CME Group’s global head of equity and FX products Tim McCourt said:
“The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our micro bitcoin and micro ether futures. Sized at one-tenth of their respective underlying tokens in size, these contracts will offer a wide range of market participants — from institutions to sophisticated, active, individual traders — greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization.”
Meanwhile, Robert Bogucki, Galaxy Digital Holdings’ managing director and global co-head of trading, stated that his company “is excited to act as a liquidity provider for these options and other CME Group cryptocurrency products.”
The managing director said users will have substantial flexibility in managing these smaller underlying contracts. Furthermore, it will open the market to new participants.
CME first showed its interest in cryptocurrency way back in October 2017 by launching bitcoin futures. Also, after two years, they launched bitcoin options in November 2019. Additionally, in February 2021, they launched ether futures on their platform.
Recommended News :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.