Derivatives marketplace CME Group has initiated Micro Bitcoin and Micro Ether futures launch options, noting the proposed March 28 action is pending regulatory review.
“We have worked closely with clients and the broader industry to establish robust and liquid cryptocurrency futures and options markets at CME Group,” Tim McCourt, global head of Equity and FX Products, CME Group, said. “At less than a year old, nearly 5.2 million combined Micro Bitcoin and Micro Ether futures contracts have changed hands. Building on the strength and liquidity of the underlying contracts, our micro-sized options will enable traders of all sizes to efficiently hedge market-moving events with greater precision and flexibility or fine-tune their cryptocurrency market exposure.”
Authorities indicated the options contracts would be one-tenth of their respective underlying tokens in size while offering a range of market participants more ways to manage exposure to the top two cryptocurrencies by market capitalization.
“Micro options provide the targeted risk exposure that investors are looking for,” Joshua Lim, head of Derivatives at Genesis Global Trading, said. “We are excited to offer liquidity on the broad and growing family of CME Group cryptocurrency products.”
Additionally, the contracts are slated to complement existing Bitcoin options contracts, officials said, allowing clients to declare long- or short-term views via a choice of monthly and Monday, Wednesday, and Friday weekly options expiries.
“Cumberland is excited to provide liquidity from day one in CME Group’s new Micro Bitcoin and Micro Ether options contracts, complementing our existing offering in the crypto spot and derivatives market,” Rob Strebel, head of Relationship Management, DRW, said. “In working with our institutional counterparties, we know there is strong demand for safe, regulated exposure to cryptoassets. This innovation from CME Group provides welcomed flexibility in the listed options space.”