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Chicago Mercantile Exchange To Offer New Bitcoin (BTC) and Ethereum (ETH) Options Trading

March 3, 2022
in Ethereum
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Chicago Mercantile Exchange (CME) Group is preparing to launch new micro-sized options contracts for the two largest crypto assets by market cap.

According to a press release, the new Micro Bitcoin and Micro Ether contracts will be one-tenth the size of a single Bitcoin (BTC) and Ethereum (ETH), respectively.

The trading feature will go live on March 28th, pending regulatory review.

“The new Micro Bitcoin and Micro Ether options contracts will… offer a wide range of market participants – from institutions to sophisticated, active, individual traders – more ways to manage their exposure to the top two cryptocurrencies by market capitalization.”

CME Group launched its original Bitcoin futures product roughly four years ago and also rolled out micro Bitcoin futures last spring.

CME Group’s head global head of equity index and alternative investment products Tim McCourt says the new vehicle will capitalize on the momentum gained from the futures product’s success.

“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.”

Cumberland DRW and Akuna Capital will provide liquidity for the options contracts.

Rob Strebel, DRW’s head of relationship management, says of the partnership,

“In working with our institutional counterparties, we know there is strong demand for safe, regulated exposure to cryptoassets.

This innovation from CME Group provides welcomed flexibility in the listed options space, and we expect these products will help attract new investors and grow the crypto ecosystem.”

CME breaks down the details of the micro options product in a fact card.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/amiak/pikepicture/PurpleRender


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