The Chicago Mercantile Exchange (CME) to Launch Euro-Denominated Micro Bitcoin and Ether Futures
The Chicago Mercantile Exchange (CME) has announced its plans to launch euro-denominated micro bitcoin and ether futures on March 18. This move follows the successful launch of its U.S. dollar-denominated micro bitcoin and ether futures contracts in May 2021 and December 2021, respectively. The new euro-denominated contracts will be one-tenth the size of the underlying assets, providing a cost-effective way for investors to gain exposure to bitcoin and ether. CME Group aims to meet the growing demand for precise risk management tools as interest in these cryptocurrencies continues to rise.
Expanding Cryptocurrency Derivatives Offering
CME Group recognizes the opportunity to offer additional products that allow clients to hedge their bitcoin and ether exposure in euros, the second-highest traded fiat currency. Currently, 24% of bitcoin and ether futures volume at CME Group is transacted from the EMEA region. By expanding its cryptocurrency derivatives offering, CME Group aims to provide more tools for clients in this region to manage their crypto portfolios and take advantage of potential market movements.
CME’s Position in the Crypto Derivatives Space
The Chicago Mercantile Exchange was among the first to offer bitcoin futures back in December 2017, shortly after Cboe’s initial entry into the market. Since then, it has become one of the leading venues for crypto derivatives trading. In January, CME saw record-high open interest and trading volume for both bitcoin and ether futures. However, despite reaching multi-month highs, these metrics remain below their peak levels set in November 2021.
Growth of Micro Bitcoin and Ether Futures
In addition to its regular futures contracts, the CME Group also offers micro bitcoin and ether futures. These smaller-sized contracts experienced a surge in January, with average daily volumes increasing by 43% compared to December. This growth highlights the demand for more accessible and cost-effective ways to trade and invest in cryptocurrencies.
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