The Chicago Mercantile Exchange (CME) has officially launched its latest Bitcoin (BTC) derivative product, paving the way for widespread use of digital assets.
Tim McCourt, Global Head of Equities and Alternative Investment Products at CME Group, said the new product “will provide an effective and cost-effective way for a wide range of market participants – from organizations to active and experienced traders – to improve their results. the impact of bitcoins and improve trading strategies. ”
The Micro Bitcoin futures contract is priced at 0.1 BTC, giving traders an additional tool to hedge the digital exchange rate risks.
JB Mackenzie, CEO of TD Ameritrade Futures and Forex, said that Micro Bitcoin futures solve two of the biggest problems when investing in cryptocurrencies – “high cost and willingness to participate in a regulated environment.”
Pointing to the growing demand for smaller contracts, the CME Group first announced its intention to release a Micro BTC-based product on March 30. At that time, the cost of one bitcoin was about $ 58,000, which is no different from today’s prices. The leading digital currency rose above $ 64,000 in April and then plummeted.
The use of cryptocurrency derivatives has skyrocketed since the Chicago Mercantile Exchange launched its first Bitcoin futures contract in December 2017. Although the Chicago Board Options Exchange quickly followed suit, the nontraditional competitor ultimately abandoned the product offering entirely.
In December 2020, derivatives trading accounted for 55% of the total market. This number is likely to grow as derivatives exchanges such as Bybt, FTX and BitMEX remain the most important for traders looking to be overly dependent on digital assets.