The smaller the better! The Chicago Mercantile Exchange (CME) has published the first results of its new Micro Bitcoin future contracts. The CME always seeks to improve customer satisfaction by offering new types of exposure to BTC.
Large micro volumes
On the 11th May 2021, the CME reported that more than 100,000 Micro Bitcoin futures contracts (MBTs) had been traded on the exchange in the first six days following the contract’s launch.
Released on 2nd May 2021, the new MBT contracts are 1/50 of the size of their regular bitcoin futures contract. This means that a single contract is worth 1/10 of a bitcoin, versus a usual five bitcoins for regular futures.
The CME explained that the launch of the Micro Bitcoin futures contract aims “To make our market more accessible to risk managers and other traders.”
Over just the first week, the exchange reports an average daily volume of 16,112 contracts, with 3,192 average daily open interest.
A total of 36% of the trading volume came from outside the United States, and more than 50% of the volume was traded during non-U.S. trading hours.
Tim McCourt, CME’s global head of equity index, said:
“Together with our existing, full-sized bitcoin futures, this new, smaller contract further strengthens our ability to help a broad array of clients, from institutions to sophisticated, active traders, to manage their bitcoin price risk.”
Almost three years in the making
The CME is diversifying its derivatives with the launch of this MBT futures contract, approximately two and a half years after the launch of the first BTC futures contract.
The exchange has a daily average trading volume of approximately 13,800 bitcoin futures, equivalent to approximately 69,000 BTC (almost £2 billion), compared to 767 ETH contracts, equivalent to 38,400 ETH (~£80 million) since its launch on 8th February 2021.
Micro bitcoins for all: the success of Bitcoin derivatives contributes to drive its price upwards over the medium and long term. With a product for each budget and level of risk aversion, anyone can get exposure to this upcoming asset class. The CME is diversifying its derivatives portfolio, yet the price of Bitcoin is taking a tumble, and may take a few months to return to its ATH of $60,000. Either way, it seems like size doesn’t matter for the CME…
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