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CME Group are to launch a Micro Bitcoin futures contract starting on May 3rd
CME Group, a leading and most diverse derivatives marketplace, today announced it will expand its suite of crypto derivatives with the introduction of a new Micro Bitcoin futures contract on Monday, May 3rd, pending regulatory review.
Micro Bitcoin futures will be one-tenth the size of one bitcoin. The smaller-sized contract will supply market participants from institutions to sophisticated, active, specific traders with another tool to hedge their spot bitcoin cost threat or perform bitcoin trading methods in an efficient, cost-effective way, all while retaining the features and advantages of CME Group’s standard Bitcoin futures.
“Given that the launch of our Bitcoin futures contract in 2017, we have actually seen steady, ongoing growth of liquidity and market involvement in our crypto derivatives, particularly among institutional traders,” stated Tim McCourt, CME Group Global Head of Equity Index and Alternative Financial Investment Products. “The introduction of Micro Bitcoin futures responds straight to require for smaller-sized contracts from a broad range of customers and will use a lot more choice and accuracy in how participants can trade controlled Bitcoin futures in a effective and transparent way at CME Group.”
Micro Bitcoin futures will join CME Group’s growing suite of cryptocurrency derivatives, consisting of Bitcoin choices and futures and recently released Ether futures. In 2021-to-date, 13,800 CME Bitcoin futures agreements (equivalent to about 69,000 bitcoin) have actually traded on average each day.
In addition, CME Ether futures have seen 767 agreements traded (comparable to 38,400 ether) usually every day given that released on February 8th.
The new contract will be cash-settled, based upon the CME CF Bitcoin Referral Rate, which functions as a once-a-day reference rate of the U.S. dollar rate of bitcoin. Micro Bitcoin futures will be listed on and based on the rules of CME.
|CONTRACT SIZE||0.10 bitcoin|
|TRADING HOURS||CME Globex: Sunday – Friday 6:00 p.m. – 5:00 p.m. ET (5:00 p.m. – 4:00 p.m. CT) with a 60-minute break each day beginning at 5:00 p.m. ET (4:00 p.m. CT)
CME ClearPort: 6:00 p.m. Sunday to 6:45 p.m. Friday ET (5:00 p.m. – 5:45 p.m. CT) with a 15-minute maintenance window between 6:45 p.m. – 7:00 p.m. ET (5:45 p.m. – 6:00 p.m. CT) Monday – Thursday.
|MINIMUM PRICE FLUCTUATION||Outrights: $5 per bitcoin = $0.50 per contract
Spreads: $1 per bitcoin = $0.10 per contract
|LISTING CYCLE||Six consecutive monthly contracts are inclusive of the nearest two December contracts.|
*Subject to regulatory review
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