CME Group’s(Chicago Mercantile Exchange) micro-bitcoin futures have already traded more than one million contracts. This instrument allows institutions and retail traders to invest in the crypto asset at a lower price point of 0.1 bitcoin. The contract has only been available for seven weeks, and demand shows there is still room for new derivatives in the crypto market.
CME Micro Bitcoin Futures Sell Big
When the CME launched a new set of bitcoin derivatives contracts directed to smaller investors almost two months ago, it didn’t expect so much buzz around it. But, according to volume numbers, it seems to have nailed a need in the market for a more granular bitcoin exposure. Now, as more than a million micro-bitcoin futures contracts have changed hands, it’s a big milestone for a very young instrument. That’s an even bigger achievement, considering cryptocurrency is still a niche market.
According to Tim McCourt, CME Group’s global head of equity index and alternative investment products, the design of this product is key for its success. He stated:
This micro-sized contract is designed to provide market participants – from institutions to smaller, sophisticated, active traders – with another tool to hedge their spot bitcoin price risk or execute bitcoin trading strategies in an efficient, cost-effective, and easily accessible way.
The micro bitcoin futures launched back in May and has opened the regulated crypto derivatives market to micro investors. With these contracts, CME addresses two main worries for potential cryptocurrency investors: the high price point entry and the need for regulated instruments.
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