U.S derivatives exchange CME Group is launching “micro” Bitcoin futures, which are designed to make it easier for investors to manage their exposure to the cryptoasset.
Amid continued growth in both the crypto market and crypto derivatives, the Chicago-based firm has begun offering futures on 1/10 of one Bitcoin. The new contracts are 1/50 the size of CME’s existing Bitcoin futures that are based on five Bitcoins.
“Micro Bitcoin futures will provide an efficient, cost-effective way for a broad array of market participants – from institutions to sophisticated, active traders – to fine-tune their Bitcoin exposure and enhance their trading strategies,” said Tim McCourt, global head of equity index and alternative investment products at CME Group, in a release.
The cash-settled futures are based on the CME CF Bitcoin Reference Rate index. Trading and clearing of the new futures are regulated by the U.S. Commodity Futures Trading Commission.
“The launch of Micro Bitcoin futures addresses two of the biggest issues when it comes to investing in cryptocurrency, namely the high cost and the desire to engage within a regulated environment,” said J.B. Mackenzie, managing director at TD Ameritrade Futures and Forex, LLC. “The demand from self-directed active traders for offerings such as this is high.”