CME Group to Launch Micro Bitcoin Futures in May

CME Group​, the world's leading and most diverse derivatives marketplace, announced that it will expand its suite of crypto derivatives with the introduction of a new Micro Bitcoin futures contract on May 3.

According to the press release, Micro Bitcoin futures will be one-tenth the size of one bitcoin. The smaller-sized contract will offer one more tool to market participants – from institutions to sophisticated, active, individual traders – to hedge their spot bitcoin price risk or execute bitcoin trading strategies in an efficient, cost-effective way, all while retaining the features and benefits of CME Group's standard Bitcoin futures.

Micro Bitcoin futures will join CME Group's growing suite of cryptocurrency derivatives, including Bitcoin futures and options and recently launched Ether futures. In 2021-to-date, 13,800 CME Bitcoin futures contracts (equivalent to about 69,000 bitcoin) have traded on average each day. In addition, CME Ether futures have seen 767 contracts traded (equivalent to 38,400 ether) on average each day since launched on February 8.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Micro Bitcoin futures will be listed on and subject to the rules of CME.