Chicago Mercantile Exchange Group plans to launch micro-Bitcoin & Ether

• Ayushi Abrol
• March 03, 2022

The new options will be available on March 28. CME Group released BTC alternative trading items in January 2020, more than two years ago. The Chicago Mercantile Exchange Group is a major commodities marketplace. The group will provide trading options for its micro Bitcoin and Ether futures contracts.

 

The Chicago Mercantile Exchange Group announced a piece of news on Tuesday. They aim to launch financial products for their current mini Bitcoin and Ether futures, thus according to legislative permission. And both of them will be 10% of the value of the coins.

Meet the newest additions to the CME Group Cryptocurrency product lineup ‒ Micro Bitcoin and Micro Ether options ‒ available for trading March 28. https://t.co/pPL9JRshkD

— CME Group (@CMEGroup) March 1, 2022

The upcoming options are set to go live on March 28. That is more than twenty-four months after the company launched a BTC alternatives trading service in January 2020. The business is still doing strong more than three years after the firm launched the first Bitcoin futures item in December 2017.

 

Micro Bitcoin futures or MBT are a USD cash-settled product centered on the Chicago Mercantile Exchange CF Bitcoin Reference Rate or BRR. That acts as a once-a-day pricing benchmark of the US dollar value of bitcoin. That is similar to the normal-sized contract. The Bitcoin Reference Rate converts the trading flow. Mainly of the major bitcoin exchanges into the US dollar value of one bitcoin at 4 p.m. within a one-hour computation window. That is the time in London.

 

A conventional Bitcoin futures contract is worth five bitcoins. At the same time, a Micro Bitcoin futures contract is about one-tenth of a bitcoin. With this, the micro contract divides the larger Bitcoin futures contract amount.

 

“Our micro-sized choices will aid dealers of all sorts. All these help to economically manage market-moving situations. But it’s all done with more precision and speed. Or fine-tune their cryptocurrency marketplace risk.” Tim McCourt stated the above statements. Chicago Mercantile Exchange Group’s senior director of stock and FX products. 

 

In December 2021, the Chicago Mercantile Exchange made a significant announcement. They said the micro Ether future contract is 0.1 ETH in size. Whereas the Bitcoin futures contracts, available since May 2021, were 0.1 BTC in size. According to the CME Group, the minimal alternative areal density is ten agreements for micro BTC and 100 agreements for micro ETH. Genesis Global Trading, Cumberland, and Akuna Capital will provide operating cash flow to the crypto trading platforms.

 

Since the announcement, BTC’s price has risen more than 15percent from $39,000 to a seven-day high of $44,862. Thus, Cointelegraph Markets Pro figures, the currency of ETH, reached a two-week high of over $3,000, predicting similar increases. The price swings might also be connected to the financial consequences of the Ukrainian conflict. This raised fears that the Russian government would circumvent restrictions by leveraging digital information.