CME Group recently announced plans to launch micro options for Bitcoin (BTC) and Ethereum (ETH) at the end of the month. According to the leading financial derivatives exchange, the contracts would represent one-tenth of each featured digital currency. In addition, CME stated that its initiative would be available to institutional and retail traders alike. Pointing out that the contracts were designed with retail traders in mind, the exchange said its micro options will launch on March 28th, pending a regulatory review.
CME felt compelled to launch micro versions of its Bitcoin and Ethereum futures after its BTC futures volume declined in March last year. According to the world’s largest financial derivatives exchange, this was to attract retail attention. Speaking on micro versions of digital currencies, Daniel Ryba, executive director of futures at E*TRADE Financial, stated:
“…the smaller contract size enables traders of all sizes – from institutions to active retail traders – to get exposure to bitcoin prices, or hedge their spot bitcoin positions.”
CME also reported its financial results for the second quarter, showing a revenue realization of $1.2 billion. In addition, the leading financial derivatives exchange said it registered an average daily volume growth of 5%. CME credited its micro futures for the upswing in daily volume growth.
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