After futures, CME to debut micro-sized Bitcoin and Ether options

Chicago Mercantile Exchange, a global derivatives marketplace, is planning to launch options on Micro Bitcoin and Micro Ether futures. The new products are expected to debut on March 28 after clearing regulatory evaluations.

Previously, the exchange used to offer bitcoin futures contracts with a minimum size of 5 BTC in 2020. However, this resulted in mostly high net-worth and institutional investors availing the products.

With the latest offering, CME will enable investors to buy options contracts that are one-tenth the size of their respective underlying tokens. The low level of investment required will allow even individual investors to access the options contracts, along with more ways to manage their holdings.

Tim McCourt, Global Head of Equity and FX Products at CME Group, said in a statement:

“At less than a year old, nearly 5.2 million combined Micro Bitcoin and Micro Ether futures contracts have changed hands. Building on the strength and liquidity of the underlying contracts, our micro-sized options will enable traders of all sizes to efficiently hedge market-moving events with greater precision and flexibility or fine-tune their cryptocurrency market exposure.”

The CME Group launched the first Bitcoin futures contract in December 2017 and later launched the micro bitcoin and micro ether futures contracts in late 2020.

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