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On Tuesday, CME Group unveiled plans to introduce micro euro-denominated bitcoin and ether futures, set to debut on March 18, contingent on regulatory green lights. These euro-based offerings will mirror their U.S. dollar-based equivalents, each representing one-tenth of the respective cryptocurrency’s value.
CME Group Announces Micro Euro-Denominated Bitcoin and Ether Futures Launch
Following the 2021 introduction of USD-denominated micro bitcoin (BTC) and micro ethereum (ETH) futures, CME Group is now expanding its portfolio to include euro-centric versions. These micro contracts, signifying a tenth or 0.1 BTC or 0.1 ETH, make investment entry points more accessible by scaling down the investment cost.
Essentially, each contract grants investors price exposure to 0.1 BTC or 0.1 ETH for a specified duration. Giovanni Vicioso, the global head of cryptocurrency products at CME Group said that interest in bitcoin and ethereum continues to swell.
The firm has seen a “four-fold increase in volume” for its U.S. dollar-based equivalents Vicioso remarked. “The launch of these new micro euro-denominated contracts will provide clients with additional products to more efficiently hedge bitcoin and ether exposure in the second-highest traded fiat behind U.S. dollar-based contracts,” the CME Group executive added.
The announcement arrives amidst a significant surge in open interest for bitcoin (BTC) futures across the board. Recently, CME Group has overtaken Binance in BTC-based futures open interest (OI).
As of Feb. 20, 2024, CME Group reported an OI in BTC futures of $6.7 billion, outpacing Binance’s OI, which currently stands at approximately $5.91 billion. Regarding the new micro euro-denominated crypto futures, Vicioso noted that year to date, 24% of the bitcoin and ether futures volume at CME Group has been executed from the EMEA region.
Sam Newman, the digital assets head of broking at TP ICAP, revealed the company’s support for CME’s latest endeavor. “TP ICAP will support this market-defining crypto derivative from CME Group by providing block facilitation services to this product,” Newman said.
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