Derivatives marketplace CME Group has stated its intentions to introduce options on both Micro Bitcoin and Micro Ether futures, starting from March 28.
The new options contracts will bring the two most expensive cryptocurrencies to one-tenth of their sizes, making them more accessible to both individuals and institutions alike who might’ve been previously incapable of trading them at their fullest value.
This would be an addition to the already active five-bitcoin options contracts initially launched back in 2020. Owners will also be given the freedom of choosing between Monday, Wednesday, or Friday weekly options expiries.
Tim McCourt, Global Head of Equity and FX Products at CME Group, said: “We have worked closely with clients and the broader industry to establish robust and liquid cryptocurrency futures and options markets at CME Group.
“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.”
Joshua Lim, Head of Derivatives at Genesis Global Trading, added: “Micro options provide the targeted risk exposure that investors are looking for. We are excited to offer liquidity on the broad and growing family of CME Group cryptocurrency products.”
On the potential of CME Group’s new options contracts to grow the crypto market, Rob Strebel, Head of Relationship Management at DRW commented: “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.
“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, and we expect these products will help attract new investors and grow the crypto ecosystem.”
The project is also expected to be given liquidity by partners who are looking to bring more flexibility into the market:
“We believe that options on these contracts will allow existing market participants greater flexibility when seeking cost-efficient exposure as well as opening the market to new participants who prefer the more granular sizing,” said John Harris, CEO of Akuna Digital Assets.
“Akuna Capital is looking forward to providing liquidity to CME Group options on Micro Bitcoin and Micro Ether futures contracts”