CME Group to Launch Euro-Denominated Micro Bitcoin and Ethereum Futures in Response to Surging Demand
The CME Group, the world’s largest derivative marketplace, has announced plans to launch euro-denominated micro Bitcoin and Ethereum futures next month. The move comes in response to the growing popularity of its U.S. dollar-denominated counterparts in the derivatives market.
Pending regulatory review, the futures are set to launch on March 18 and are expected to cater to the European market. The CME Group’s decision to offer these new products reflects the increasing demand for alternative investment opportunities in the crypto space.
Futures contracts, a type of investment agreement, require investors to buy or sell the underlying asset at a predetermined price and expiration date. In this case, the micro futures offered by CME Group will be one-tenth of a Bitcoin (BTC) or Ethereum (ETH), providing traders with smaller units to trade.
These micro futures have gained popularity among traders due to their minimal fees and better liquidity compared to spot crypto ETFs. Giovanni Vicioso, CME Group‘s global head of cryptocurrency products, highlighted that a significant volume of Bitcoin and Ether futures has been transacted from the Europe, the Middle East, and Africa region this year.
Vicioso emphasized the importance of developing tools that allow clients to hedge their crypto portfolios and express their market views. Furthermore, he noted that the CME Group has experienced a four-fold increase in volume for their U.S. dollar-denominated futures.
The CME Group initially introduced Bitcoin futures in December 2017, followed by the launch of Ethereum futures and micro futures for both digital assets. The company has also expressed interest in exploring futures for other cryptocurrencies such as Solana (SOL) and Cardano (ADA).
With the upcoming launch of euro-denominated micro futures, the CME Group aims to provide European traders with more opportunities to participate in the crypto market and manage their investment portfolios effectively.
Analyst comment
Positive news. The launch of euro-denominated micro Bitcoin and Ethereum futures by CME Group in response to surging demand reflects the increasing popularity of alternative investment opportunities in the crypto space. The move is expected to cater to the European market and provide traders with smaller units to trade, offering minimal fees and better liquidity compared to spot crypto ETFs. This development is likely to further boost the volume of futures transactions and expand investment options for European traders in the crypto market.
