0.1 BTC, Bitcoin, Bitcoin (BTC), Bitcoin derivatives, BTC, cboe, CME, CME bitcoin futures, CME futures, CME Group, ETH, ETH contracts, ether, Ethereum, Micro Bitcoin, Micro BTC, One-Tenth, Tim McCourt

The American global markets company Chicago Mercantile Exchange (CME Group) has announced the launch of a new bitcoin futures product on May 3, 2021, if U.S. regulators approve the product. The new contract is a micro bitcoin futures product that represents 0.1 bitcoin rather than CME’s other contract that equals five bitcoin. The smaller contract aims to make investment in bitcoin futures more accessible “to a broad array of clients.â€

CME Group to Launch Micro Bitcoin Futures Contract

The well known derivatives marketplace CME Group has announced the launch of a new futures product that’s smaller than the contract that represents five bitcoin (BTC). The new product, pending regulatory approval, will be a micro-futures contract that offers exposure to 0.1 BTC. Essentially, that’s one-tenth the size of one bitcoin and the company thinks that investors will be interested in the smaller product.

Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products explained that CME has seen a lot of growth since launching BTC futures back in 2017. “Since the launch of our Bitcoin futures contract in 2017, we have seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders,†McCourt explained during the micro bitcoin futures announcement.

The alternative investment products executive further noted:

Current Bitcoin and Ethereum CME Dervitives Products See Growth

In 2017, the revelation that CME Group and Cboe planned to join the bitcoin economy drove the price of the asset upwards. Later, however, the Chicago Board Options Exchange (Cboe) stopped offering bitcoin futures. CME, on the other hand, outpaced global competition and became one of the world’s largest bitcoin futures markets in November 2020. The following month, CME announced the company would also offer ethereum (ETH) futures contracts.

As long as regulators are fine with it, the micro bitcoin futures will join the prior BTC and ETH contracts CME offers already. CME says that around 69,000 bitcoin worth of contracts are traded every day, and 38,400 ether since launching the ETH product. Just like the five BTC contract, the micro bitcoin futures product will reference the CME CF Bitcoin Reference Rate and all the settlement is facilitated in cash.

What do you think about CME launching a micro bitcoin futures contract? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

RELATED NEWS

Over $750 Million in Bitcoin from the 2016 Bitfinex Hack Moved Today

On Wednesday, after bitcoin prices touched a new all-time high, thousands of bitcoins from the August 2, 2016, Bitfinex hack were transferred to unknown wallets. The exact count of BTC moved from the hack is not entirely clear, but one blockchain parser shows that over 12,208 BTC from the 2016 Bitfinex breach worth $754 million […]

Xem chi tiết: Over $750 Million in Bitcoin from the 2016 Bitfinex Hack Moved Today

Popular Nightclub E11even Miami Reveals Cryptocurrency Payment Acceptance

While crypto assets have seen monumental gains this week, the popular nightclub in Florida, E11even Miami will accept bitcoin and a slew of other digital assets for merchandise, beverages, and tables. Following the pandemic, E11even Miami will be reopening on April 23 and will have crypto asset support when the nightlife establishment reconvenes services. 24-Hour […]

Xem chi tiết: Popular Nightclub E11even Miami Reveals Cryptocurrency Payment Acceptance

Bitcoin Price Captures a $64,895 High, Pantera CEO Says ‘BTC Rally Exactly Like Previous Halvings’

Cryptocurrency markets have been surging during the last 24 hours, as billions of dollars have flooded into the crypto-economy. Bitcoin’s value touched an all-time high (ATH) once again on Wednesday morning (EST), reaching $64,895 per unit. The latest price rise is leading up to the upcoming Coinbase direct listing on Nasdaq. Crypto-Economy Surpasses $2.2 Trillion […]

Xem chi tiết: Bitcoin Price Captures a $64,895 High, Pantera CEO Says ‘BTC Rally Exactly Like Previous Halvings’

Kenyan Athlete and Olympic Champion Eliud Kipchoge Gets $40K in ETH After Auctioning NFTs of ‘Key Moments’

Kenyan athlete and world record holder, Eliud Kipchoge recently auctioned off his first set of NFTs for a total of 17.9837 ethereum tokens. The auction, which was conducted on the NFT marketplace Opensea, includes some of the key moments in Kipchoge’s career. According to a report, one of these moments, Kipchoge’s 2019 record-breaking run in […]

Xem chi tiết: Kenyan Athlete and Olympic Champion Eliud Kipchoge Gets $40K in ETH After Auctioning NFTs of ‘Key Moments’

Latest Episode of The Simpsons Prices Bitcoin at ‘Infinite’ as the Crypto Consolidates Above the $60K Threshold

Bulls are taking the reins of the price action in the bitcoin across the board, making a solid breakout above the $60,000 threshold, reaching new all-time highs, and it seems The Simpsons “did it again.†In a new episode broadcasted on Sunday, BTC is highlighted in a ticker news feed with the infinite sign. Gamestop […]

Xem chi tiết: Latest Episode of The Simpsons Prices Bitcoin at ‘Infinite’ as the Crypto Consolidates Above the $60K Threshold

Bitcoin’s Creator Satoshi Nakamoto Is Now a Member of the Top 20 World’s Richest People

This week our newsdesk covered the world’s wealthiest cryptocurrency billionaires after the American business magazine Forbes published the 2021 list of billionaires. Now it was mentioned in our report that Satoshi Nakamoto didn’t make the cut, even though Bitcoin’s inventor is one of the wealthiest people in the world. Using today’s bitcoin exchange rates, data […]

Xem chi tiết: Bitcoin’s Creator Satoshi Nakamoto Is Now a Member of the Top 20 World’s Richest People

Report Claims the FBI Uses Bitcoin Mixers During BTC Forfeiture Processing

Over the last eight years, U.S. law enforcement has seized a great number of bitcoins and at one time, the Federal Bureau of Investigation (FBI) held one of the largest bitcoin wallets after the Silk Road takedown. A recently published report shows the FBI has started using cryptocurrency mixing applications in recent times in order […]

Xem chi tiết: Report Claims the FBI Uses Bitcoin Mixers During BTC Forfeiture Processing

Novogratz’s Galaxy Digital Jumps Into the Bitcoin ETF Fray

The investment company Galaxy Digital Holdings has revealed it is joining the growing list of firms looking to sponsor a bitcoin exchange-traded fund (ETF). Novogratz’s crypto firm applied with the U.S. Securities Exchange Commission (SEC) on Monday to launch a product called the “Galaxy Bitcoin ETF.†Galaxy Digital Wants to Provide a Bitcoin ETF Galaxy […]

Xem chi tiết: Novogratz’s Galaxy Digital Jumps Into the Bitcoin ETF Fray

How African Users Can Buy and Trade Bitcoin Cash Without Facing KYC or Geoblocking Hurdles

Bitcoin Price Taps New All-Time High, Analyst Says ‘Fertile Grounds for BTC to Take a Fresh Leg Up’

Spanish Tax Authority Issues 14,800 Warning Letters to Cryptocurrency Holders

Bitcoin’s Creator Satoshi Nakamoto Is Now a Member of the Top 20 World’s Richest People

Investor Says Bitcoin Bull Run Is Not Just Getting Started, Run-up Is in the ‘Top of the 7th Inning’

14 Years of Art for $500K: Youtuber Ali Spagnola Compiles All Her Free Paintings Into an NFT

Report Claims the FBI Uses Bitcoin Mixers During BTC Forfeiture Processing

Off to the Races: Kryptoin Re-files Bitcoin ETF Opting to List on Cboe Over Nasdaq

Other Articles