Derivatives marketplace CME Group has announced that it’s launching micro-sized Bitcoin and Ether offerings to its customers.
Tim McCourt, CME Group’s Global Head of Equity and FX Products, said: “The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures.”
McCourt then went on to explain that the lesser-in-size crypto contracts represent a more convenient option for traders and market participants to expand their portfolio with the two biggest cryptocurrencies.
“Sized at one-tenth of their respective underlying tokens in size, these contracts will offer a wide range of market participants – from institutions to sophisticated, active, individual traders – greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization,” McCourt added.
Robert Bogucki, MD and Global Co-Head of Trading at Galaxy Digital Holdings Ltd – an investment management firm and Bitcoin futures block trades provider for CME Group – noted that the offerings will provide greater flexibility and open up the marketplace to newcomers.
He explained: “CME Group Micro Bitcoin and Micro Ether options are an important step in the development of a thriving marketplace for institutions and sophisticated investors who want crypto exposure in a regulated environment.
“The smaller contract sizes will give investors and traders greater flexibility in managing their exposure to the two biggest cryptocurrencies in the world, opening the market up to new participants. Galaxy Digital is excited to act as a liquidity provider for these options and other CME Group cryptocurrency products.”
With the Micro Bitcoin and Micro Ether options launching, CME Group’s cryptocurrency offerings suite now consists of more than 20 Micro products, collectively equating to more than 1.2 billion traded contracts.
Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, which is an automated trade execution provider for CME Group, noted: “We continue to see interest in cryptocurrency exposure from our active trader and institutional investor clients.
“CME Group’s Micro Bitcoin and Micro Ether options will certainly benefit our clients seeking enhanced flexibility to participate in cryptocurrency markets with less upfront cost, and we are excited to add these offerings to the wide range of global products currently available on our platform.”
Additionally, CME Group stakeholder Neuberger Berman also added a comment on the new micro-offerings launch, with Senior Portfolio Manager Derek Devens calling it an ‘innovative’ approach that contributes to the longevity of cryptocurrencies.
“We are excited for CME Group’s new Micro Cryptocurrency options offering as it will better align the listed cryptocurrency options market with the average crypto investor’s exposure,” stated Devens.
“We expect the pioneering exchange-traded, centrally cleared offering will appeal to over-the-counter cryptocurrency options market participants and facilitate increased market liquidity and price stability across cryptocurrency futures and options in U.S. listed markets. CME Group’s continued innovations represent an essential step towards building an enduring cryptocurrency ecosystem,” Devens concluded.
