The Chicago Mercantile Exchange Group (CME) to Launch Euro-Denominated Micro Bitcoin and Ethereum Futures Contracts
The Chicago Mercantile Exchange Group (CME), the world’s leading derivatives marketplace, has announced its plans to launch Euro-denominated Micro Bitcoin (BTC) and Micro Ether (ETH) futures contracts on March 18. These new investment products will provide clients with more flexibility to participate in the crypto market.
Benefits of Micro Bitcoin and Micro Ethereum Futures Contracts
- The futures contracts represent 10% of the respective coin’s value.
- They allow investors with less capital to join the Bitcoin and Ethereum markets.
- They potentially reduce risk and make these assets more attractive for portfolio diversification.
Expansion of Euro Trading Options
Giovanni Vicioso, global head of crypto products at CME Group, stated that the Euro-denominated contracts would offer additional investment options for clients to hedge their Bitcoin and Ether exposure. The expansion comes after the success of the US dollar-denominated Micro Bitcoin and Ethereum futures contracts, which saw a fourfold increase in volume. The new offerings will be listed and subject to CME rules.
Institutional Demand on the Rise
Institutional interest in cryptocurrencies has been increasing despite previous concerns about collapses in the market. The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has further fueled institutional adoption. The upcoming Euro-denominated micro Bitcoin and Ethereum futures from CME signify continued interest and confidence in the long-term potential of crypto.
Hot Take: Spot Ethereum ETFs Await SEC Decision
Many investors are eagerly awaiting the SEC’s decision on spot Ethereum ETF filings, which is expected to be made on May 25. Several asset managers have filed for these ETFs, indicating growing interest in Ethereum and other cryptocurrencies. However, the SEC’s stance on crypto asset securities remains unclear. The recent approval of spot Bitcoin ETFs should not be seen as an indication of the Commission’s willingness to approve listing standards for crypto assets.
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