CME Group (Chicago Mercantile Exchange) micro bitcoin futures have traded more than 1 million contracts. This tool allows institutional and retail traders to invest in crypto assets at a low price of 0.1 Bitcoin. The contract is only available for seven weeks, and demand indicates that there is still room for new derivatives in the crypto market.

CME Micro Bitcoin Futures Big Sale

About two months ago, when CME launched a new Bitcoin derivatives contract for small investors, it did not expect it to attract so much attention. However, based on transaction volume data, it appears to have identified the market’s need for more fine-grained Bitcoin exposure. Now, with more than 1 million micro bitcoin futures contracts changing hands, this is an important milestone for a very young tool. Considering that cryptocurrency is still a niche market, this is a greater achievement.

according to Tim McCourt, Head of Global Equity Indexes and Alternative Investment Products at CME Group, the design of this product is the key to its success. He says:

This micro-contract is designed to provide market participants-from institutions to small, mature, and active traders-with another tool to hedge their spot bitcoin price risk or execute bitcoin in an effective, economical and easily accessible way Currency trading strategy.

Micro Bitcoin futures were launched in May and opened the regulated crypto derivatives market to micro investors. Through these contracts, CME Group addresses the two main concerns of potential cryptocurrency investors: high price entry and the need for regulated instruments.

Broker agrees

Brokers and investment services have also experienced reasonable demand for micro bitcoin futures. Martin Franchi, CEO of Ninjatrader Group, announced that these contracts are becoming more and more popular in the field. Frankie emphasized:

We have seen that this new micro-contract is rapidly becoming popular among the Ninjatrader user community, which is related to the growing demand of cryptocurrency traders who are interested in diversifying and using professional tools in trading opportunities.

Ninjatrader has a community of over 60,000 customers. Steven Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers, said at his press conference:

This smaller contract will enable our more mature individual customers to participate in the market and enable our institutional customers to manage their Bitcoin exposure more precisely.

This new pricing strategy may enable new customers to enter more regulated markets such as CME. Although derivatives are still highly concentrated on unregulated platforms, this situation may change in the future. CME’s micro bitcoin futures are part of an interesting strategy to achieve this change.

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What do you think of the popularity of CME’s micro bitcoin futures? Tell us in the comments section below.

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