Small, but strong – Both to satisfy large institutional investors and small stock traders, stock exchanges and large funds multiply investment vehicles on Bitcoin (BTC) and cryptos. After offering mini futures on Bitcoin, then on Ethereum (ETH), the exchange of Chicago Mercantile Exchange (CME) will offer micro options on these 2 cryptocurrencies.
Bitcoin and Ethereum micro-options for small investors
In December 2017, the major market place for derivatives of the Chicago Mercantile Exchange had launched one of the 2 first futures contracts (futures) on bitcoin. Since the demand investors for crypto-assets is still growing. The Chicago Stock Exchange therefore offered future on Ethereum, as well as micro futures on these cryptos.
Today, the CME continue to diversify its digital asset derivatives offering. He talks about micro options on these micro futures of the 2 most valued cryptocurrencies on the market. In a press release published on March 1, 2022, the CME explains its intention to launch – upon approval by the regulators – Micro Bitcoin and Micro Ether options.
In more detail, a Micro Bitcoin option contract will cover 0.1 BTCand on 0.1ETH for a Micro Ether option. At the time of this writing, this represents a value of approximately: $4,400 for the micro-option on Bitcoin and $300 for the one on Ethereum.
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Access and exposure to cryptocurrencies is becoming more democratic
These new options are aimed at all types of traders, to help them manage their positions with more precision. Indeed, so far, the Bitcoin options contracts offered by the CME have focused on 5 BTCis around $220,000 at the current price. It must be said that the micro-futures BTC and ETH are experiencing a great success :
“In less than a year, a total of almost 5.2 million Micro Bitcoin and Micro Ether futures contracts have been traded. Building on the strength and liquidity of these underlying contracts, our micro-sized options will allow traders of any size to effectively hedge fluctuating market events, with greater precision and flexibility, or to fine-tune their exposure to the cryptocurrency market »
Tim McCourt, CME Global Product Manager
Companies Genesis Global Trading, cumberland and Akuna Capital will be the main suppliers of cash for these new derivatives.
The only problem of these products is that they are paid in dollars. They are not investment products “physical”, that is to say based on a real underlying in Bitcoin, such as the units of Grayscale’s GBTC fund, for example. It must be said that the Securities and Exchange Commission does everything possible to delay a physical ETF on Bitcoin (ETF says spot).
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