CME Group Launched Micro-sized Bitcoin and Ethereum Options



One of the largest derivatives trading platforms has indeed proceeded with releasing options on Micro Bitcoin and Micro Ether futures, as promised earlier this month. The company outlined the growing investor demand for such products as the main reason behind the launch.

  • CryptoPotato reported earlier in March CME Group’s intentions to launch options on Micro Bitcoin and Micro Ether futures. These products offer a tenth of the exposure of the underlying asset, making them more suitable alternatives for individual investors.
  • Futures contracts require investors to sell them on a specific date, while options provide them the right, but not the obligation, to buy or sell at a particular price at any time.
  • CME Group announced on March 28 that these products have officially gone live; thus, the firm expanded its “suite of cryptocurrency derivatives offerings.” The firm’s Global Head of Equity and FX Products – Tim McCourt – commented:

“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. 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.”

  • On the other hand, Darek Devens, Senior Portfolio Manager at Neuberger Berman, said his company expects that these products will be appealing to “over-the-counter cryptocurrency options market participants.” He also believes they will facilitate “increased market liquidity and price stability across cryptocurrency futures and options in the US-listed markets.”
  • With the aforementioned launch, CME Group’s total micro products exceed 20. According to the company, they have “traded more than 1.2 billion contracts since their introduction.”
  • CME Group has been among the most open-minded regulated global exchanges in terms of cryptocurrency services, having added BTC futures contracts nearly five years ago.
  • Most recently, the company behind Google – the Internet mogul Alphabet – invested $1 billion in the Chicago Mercantile Exchange.
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