CME Launches Micro Bitcoin and Ether Options03.29.2022
CME Group, the world’s leading derivatives marketplace, launched options on Micro Bitcoin and Micro Ether futures, further expanding its suite of cryptocurrency derivatives offerings.
“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,” said Tim McCourt, CME Group Global Head of Equity and FX Products. “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.”
— CME Group (@CMEGroup) March 28, 2022
“CME Group Micro Bitcoin and Micro Ether options are an important step in the development of a thriving marketplace for institutions and sophisticated investors who want crypto exposure in a regulated environment,” said Robert Bogucki, Managing Director, Global Co-head of Trading at Galaxy Digital Holdings Ltd. “The smaller contract sizes will give investors and traders greater flexibility in managing their exposure to the two biggest cryptocurrencies in the world, opening the market up to new participants. Galaxy Digital is excited to act as a liquidity provider for these options and other CME Group cryptocurrency products.”
“We continue to see interest in cryptocurrency exposure from our active trader and institutional investor clients,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “CME Group’s Micro Bitcoin and Micro Ether options will certainly benefit our clients seeking enhanced flexibility to participate in cryptocurrency markets with less upfront cost, and we are excited to add these offerings to the wide range of global products currently available on our platform.”
“We are excited for CME Group’s new Micro Cryptocurrency options offering as it will better align the listed cryptocurrency options market with the average crypto investor’s exposure,” said Derek Devens, Senior Portfolio Manager, Option Group, at Neuberger Berman. “We expect the pioneering exchange-traded, centrally cleared offering will appeal to over-the-counter cryptocurrency options market participants and facilitate increased market liquidity and price stability across cryptocurrency futures and options in U.S. listed markets. CME Group’s continued innovations represent an essential step towards building an enduring cryptocurrency ecosystem.”
Options on Micro Bitcoin and Micro Ether futures will complement CME Group’s diverse slate of more than 20 Micro products, which, together, have traded more than 1.2 billion contracts since their introduction.
Year-to-date net inflows reach $712m.
Sir Jon Cunliffe said regulators should extend existing regimes to crypto before it becomes systemically impor...
Brett Harrison had joined the crypto exchange in May 2021 from Citadel Securities.
Risk management practices across the crypto ecosystem stress are being tested.
Anticipated Ethereum Merge has increased demand to hedge risk on a regulated venue.