CME Group Launched Micro Options For Ethereum And Bitcoin Futures

Republished By Plato

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CME Group launched micro options for both Ethereum and Bitcoin futures and proceeded with what it promised earlier this month as we read in our previous crypto news.

The company outlined the growing investor demand for these products as the main reason behind the launch. The CME had intentions back In March to launch options on Micro Bitcoin and Micro ETH futures with the products offering a tench of the exposure of the asset and making them suitable alternatives for individual investors.

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Futures contracts require investors to sell them on a specific date while the options provide them the right but not the obligation to purchase or to sell at a particular price at any time. CME Group launched micro options for both ETH and BTC and said the products are now live with the company expanding gits suite of crypto derivatives offerings. The Global Head of Equity and FX Products Tim McCourt commented:

“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. 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.”

On the other hand, Darek Devens who is the Senior Portfolio Manager at Neuberger Berman said his company expects that the products will be appealing to OTC market participants and thinks that this will facilitate the increased market liqudity and price stability on crypto futures and options in the US markets.

With the launch, CME group’s total micro products hit 20 and they traded more than 1.2 billion contracts since the introduction. CME Group has been among the most open-minded regulated global exchanges in terms of crypto savings after it added BTC futures almost five years ago. The company behind Google, Alphabet invested $1 billion in CME.+

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The CEO of Akuna Digital Assets John Harris said that his company believes that the options on the contracts will allow for existing market participants with much flexibility when seeking cost-efficient exposure as well as opening the markets to a new participants that will look for a granular sizing. For example, in November, Google’s parent firm Alphabet invested $1 billion into the CME group. CME futures products are the only contracts for the Securities and Exchange Commission approved BTC ETFs in America and the US regulator refuses to greenlight a spot-based fund that will be backed by the physical asset itself.

Time Stamp: March 29, 2022