CME Launches New Bitcoin Futures Contract Crypto micro futures have become particularly popular in the past few months.
The Chicago Mercantile Exchange is launching a new Bitcoin product.
By September 30, merchants Can buy Bitcoin Friday futures contracts are worth 1/50th of a bitcoin – or $1,220 each.
CME's Micro Ether futures contracts hit four consecutive month highs in daily volume. Each contract is currently worth about $260.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, sees microcontracts as a more efficient product for traders, with standard bitcoin or ether futures worth $305,000 and $130,000, respectively.
“Our microcontracts aren't just limited to retail merchants — we're seeing institutions looking to fine-tune their exposure,” Vicioso said. News.
Interest in CME Micro Ether Futures peaked around the time Ethereum exchange-traded funds were approved by the Securities and Exchange Commission.
“ETF products and futures have a symbiotic relationship,” says Vicioso. “Futures are growing as a result of ETFs – but ETFs are also growing as a result of the liquidity with our futures products.”
What are Crypto Futures?
Futures contracts allow traders to buy or sell an asset at a predetermined price at a specific future date.
Join the community to get our latest articles and updates
CME offers a variety of crypto futures contracts, including Bitcoin Futures, Ether Futures, Micro Bitcoin Futures, Micro Ether Futures – and soon to be called Bitcoin Friday Futures, which are even smaller than Micro Bitcoin Futures.
The difference between standard futures contracts and micro contracts is simply one of size, the smallest being micro ether futures and the largest being standard bitcoin futures.
Back in November, CME became the largest exchange worldwide in terms of open interest for bitcoin futures — a metric that measures the amount of contracts. Today, that open interest is $10.3 billion, or $2.8 billion more than Binance's $7.5 billion.
But it's a different story for Ether. Despite growing 40% to $954 million over the past 12 months, CME Ether Futures Fifth rank only In terms of open interest, behind Binance, ByBit, OKX and HTX, CoinGlass data.
Bitcoin is still king
Now averaging $15 million a day, micro ether contracts dwarf the $200 million to $300 million in daily volume in micro bitcoin futures.
Vicioso attributes the difference to ether futures launching in 2020, three years after the introduction of bitcoin futures. In other words, they don't have the same amount of time to mature. “It's a work in progress,” he said.
And these products have a lot of room to continue maturing. Bitcoin ETF options, which could land sometime in 2025, will “raise the pie” for everyone, Vicioso said — and won't take away demand from the CME.
Such products “create trading opportunities in our suite,” similar to what ETFs do for CME futures, he said.
Crypto market movers
Bitcoin is down 3.1% in the last 24 hours, trading at $61,800.Ethereum is now down 5.5% at $2,570.
What are we studying?
Ailing Binance executive jailed in Nigeria, not allowed wheelchair, family says – NewsBest Crypto Options Trading Platforms August 2024 – Milk RoadLido's stocked ETH rose year-over-year – but its market share fell – Not boundUS Crypto Tax Rules: When Do You Pay Tax on Cryptocurrency? – Milk RoadUK's crypto dreams stall as registrations with financial regulator fall short — News
Tom Carreras writes about markets for DL ​​News. Got a tip about Bitcoin, Ethereum and Futures? Reach [email protected].
Related TopicsETHERUMBITCOIN
