CME Group Will Launch Micro-Sized BTC, ETH Options

EthereumCME Group Will Launch Micro-Sized BTC, ETH Options


The CME Group will launch micro-sized BTC, ETH options later this month and we are learning more about them in today’s latest altcoin news.

In a recent announcement, the CME Group revealed plans to launch options on Micro BTC and Micro Ether futures with the new products offering a tenth of the exposure to the underlying asset opening and the investment products up to a wider market that will include individual traders. The announcement added that the new options will only complement the existing BTC options contracts that were launched in 2020 at 5 BTC.

The futures contract requires the investors to sell them on a specific date whereas options grant an investor a right but not an obligation to buy or sell at a given price at any time. The new options will allow traders to express longer or shorter-term views with a choice of monthly and weekly expiries and added.

The CME group will launch micro-sized BTC, ETH options while it already offers these options but still adds flexibility in the options product. The global head of equity and FX products at the company Tim McCourt commented that about 5.3 million micro BTC and ETH futures contracts were traded in less than a year and added:

“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 CEO of Akuna Digital Assets John Harris said that his company believes that the options on the contracts will allow for existing market participants with much flexibility when seeking cost-efficient exposure as well as opening the markets to a new participant that will look for a granular sizing. For example, in November, Google’s parent firm Alphabet invested $1 billion into the CME group. CME futures products are the only contracts for the Securities and Exchange Commission approved BTC ETFs in America and the US regulator refuses to greenlight a spot-based fund that will be backed by the physical asset itself. Also, there’s huge mounting pressure for financial experts and politicians with the watchdog remaining resolute and citing usual investor protection excuses. The conversion of the Grayscale BTC trust into a spot ETP can be the first big approval this year as the $31 billion funds are now trading at a -24.45% discount in anticipation of this.



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