CME Group, a number one and most various derivatives market, immediately introduced it’ll increase its suite of crypto derivatives with the introduction of a brand new Micro Bitcoin futures contract on Monday, Could third, pending regulatory assessment.
Micro Bitcoin futures will probably be one-tenth the scale of 1 bitcoin. The smaller-sized contract will present market contributors – from establishments to classy, lively, particular person merchants – with yet another instrument to hedge their spot bitcoin value threat or execute bitcoin buying and selling methods in an environment friendly, cost-effective means, all whereas retaining the options and advantages of CME Group’s standard Bitcoin futures.
“For the reason that launch of our Bitcoin futures contract in 2017, we’ve got seen regular, ongoing development of liquidity and market participation in our crypto derivatives, particularly amongst institutional merchants,” stated Tim McCourt, CME Group International Head of Fairness Index and Various Funding Merchandise. “The introduction of Micro Bitcoin futures responds on to demand for smaller-sized contracts from a broad array of purchasers and can provide much more selection and precision in how contributors can commerce regulated Bitcoin futures in a clear and environment friendly method at CME Group.”
Micro Bitcoin futures will be part of CME Group’s rising suite of cryptocurrency derivatives, together with Bitcoin futures and choices and just lately launched Ether futures. In 2021-to-date, 13,800 CME Bitcoin futures contracts (equal to about 69,000 bitcoin) have traded on common every day.
As well as, CME Ether futures have seen 767 contracts traded (equal to 38,400 ether) on common every day since launched on February 8th.
The brand new contract will probably be cash-settled, primarily based on the CME CF Bitcoin Reference Rate, which serves as a once-a-day reference fee of the U.S. greenback value of bitcoin. Micro Bitcoin futures will probably be listed on and topic to the foundations of CME.
|CONTRACT SIZE||0.10 bitcoin|
|TRADING HOURS||CME Globex: Sunday – Friday 6:00 p.m. – 5:00 p.m. ET (5:00 p.m. – 4:00 p.m. CT) with a 60-minute break every day starting at 5:00 p.m. ET (4:00 p.m. CT)
CME ClearPort: 6:00 p.m. Sunday to six:45 p.m. Friday ET (5:00 p.m. – 5:45 p.m. CT) with a 15-minute upkeep window between 6:45 p.m. – 7:00 p.m. ET (5:45 p.m. – 6:00 p.m. CT) Monday – Thursday.
|MINIMUM PRICE FLUCTUATION||Outrights: $5 per bitcoin = $0.50 per contract
Spreads: $1 per bitcoin = $0.10 per contract
|LISTING CYCLE||Six consecutive month-to-month contracts inclusive of the closest two December contracts.|
*Topic to regulatory assessment