Key Points
The Chicago Mercantile Exchange (CME) has announced its intention to launch euro-denominated micro Bitcoin and Ether futures.
The launch is planned for March 18, subject to regulatory clearance.
Previous Successful Launches
This move comes after the successful introduction of U.S. dollar-denominated micro Bitcoin futures in May 2021.
Micro Ether futures followed in December 2021.
CME had earlier brought out regular euro-denominated Bitcoin and Ether futures contracts in August 2022.
These were accompanied by options products for these cryptocurrencies.
The upcoming micro futures contracts will be one-tenth the size of their respective underlying assets.
This makes them a more accessible choice for investors looking for exposure to Bitcoin and Ether.
Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, stated that global investors have been seeking more precise risk management tools.
This is due to the growing interest in Bitcoin and Ether.
Vicioso pointed out a four-fold increase in volume for USD-denominated micro Bitcoin and micro Ether futures.
This reflects the rising demand for such products.
The decision to offer euro-denominated contracts is part of CME Group’s strategy to cater to a wider international market.
It has been noted that 24% of Bitcoin and Ether futures volume has originated from the EMEA region.
Vicioso added that they continue to develop additional tools for clients in that region.
These tools are meant to hedge their crypto portfolios and express or take a view on potential market moves.
The introduction of these products signifies CME’s ongoing commitment to the crypto derivatives market.
This commitment dates back to the launch of its first Bitcoin futures in December 2017.
Recent data shows significant interest in these offerings.
There was a record-high open interest and trading volumes for Bitcoin futures last month.
There were also notable increases in Ether futures activity.
