CME Group has formally launched micro options on Bitcoin and Ethereum future
As promised earlier this month, one of the biggest derivatives trading platforms has indeed proceeded with releasing options on Micro Bitcoin and Micro Ethereum. The company indicated the growing investor demand for such products as the main reason behind the launch.
- Micro Bitcoin and Micro Ether futures offer a tenth of the exposure of the underlying asset, making them more suitable alternatives for individual investors.
- Future contracts require investors to sell them on a specific date, it sure provides them the right but not the obligation to buy or sell at a particular price at any time.
- On March 28 CME Group announced that these products have officially gone live; thus, the firm has grown its Equity and FX Products -Tim McCourt commented:‘‘
The launch of these micro-sized options builds on the remarkable growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures. These contracts will offer a broad range of market traders-greater flexibility and precision to active, sophisticated, individual traders- greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization.
- Darek Devens, Senior Portfolio Manager at Neuberger Berman said his company expects that these products will be attractive to ‘‘over-the-counter cryptocurrency options market participants.’’ He also thinks that they will facilitate increased market liquidity as an option in the US-listed markets.
- According to the CME Groups, they have traded more than 1.2 billion contracts since their introduction.
- CME Group has been one of the most open-minded global exchanges in terms of cryptocurrency services, having added BTC futures contracts almost five years ago.
- ‘‘The Internet mogul Alphabet’’ the company behind Google, invested $1billion in the Chicago Mercantile Exchange.