Amidst the soaring stock market, expressed in US dollars, the derivatives market offers this time in euros. Next month, the CME Group will launch futures on micro-bitcoin and Ethereum, denominated in euros, catering to the growing demand in the derivatives market. The launch of these futures is scheduled for March 18, subject to regulatory approval.
Related: Euro-Backed Stablecoin Launches on Avalanche Blockchain Platform by Circle
About CME Group Inc
CME Group is the world’s largest derivatives market, comprising four exchanges: The Chicago Mercantile Exchange (CME), The Commodity Exchange (COMEX), The New York Mercantile Exchange (NYMEX), and The Chicago Board of Trade (CBOT). Established in 2007, the company calls Chicago, Illinois, its home and plays a significant role in global financial markets. It boasts many futures and options contracts covering various asset classes.
CME Group offers a variety of cryptocurrency futures contracts for European investors. These contracts allow investors to speculate on the future price of Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization.
Cryptocurrency Futures
Futures are the type of contract where you agree to buy or sell an asset at a predetermined price on a future date, regardless of where the market’s headed.
For Bitcoin Futures settlement happens in US dollars, with each contract representing 5 BTC. They are traded on the CME Globex electronic trading platform.
Let’s talk Ether Futures, same deal, different crypto. Settled in US dollars and boasts a contract size of 50 ETH. And yes, you guessed it, they’re traded on the CME Globex platform too.
New Crypto Direction of CME
“Microfutures” are like fragments of the underlying asset. In this case, CME Group announced they’d be carving out one-tenth of a Bitcoin (BTC) or Ethereum (ETH) — the two largest digital coins, currently valued at $51,538 and $2,940 respectively as of now, but who knows what tomorrow holds?
Introducing Micro Bitcoin Euro Futures settled in euros with a contract size of 0.1 BTC. They’re scheduled to launch on March 18, 2024, pending approval from the regulators.
More Info:
- Exploring Speculations Surrounding Bitcoin ETFs and the Future Trajectory of BTC & Altcoins
- Bitcoin ETFs Soar: iShares and Fidelity Make Waves with $4.8 Billion Flows in January
Likewise, Micro Ether Euro Futures, also set to be settled in euros with a contract size of 0.1 ETH, are lined up for the same launch date, March 18, 2024, waiting for that regulatory green light.
Offering minimal fees and top-notch liquidity, these products have been a hit among traders for years, providing them with an alternative to cryptocurrency ETFs — at least until bitcoin-based investment tools became widely available in the USA.
Back in December 2017, CME Group first launched futures on BTC. Since then, they’ve rolled out futures on ETH and micro-futures on both digital assets. In 2022, the executive at CME Group hinted at the possibility of futures for Solana (SOL) and Cardano (ADA).
24% of the bitcoin and ether futures volume at CME Group since the beginning of the year has come from the Europe, Middle East, and Africa region. We’re constantly developing new tools for our clients to hedge their crypto portfolios and express or evaluate potential market moves.
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group
CME Group continues to innovate and expand its offerings to meet the growing needs of the derivatives market. With minimal fees and high liquidity, these products are designed to further increase the availability and diversity of cryptocurrency investment options, giving traders greater flexibility and portfolio management options.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
