The Chicago Mercantile Exchange (CME) is set to launch euro-denominated micro Bitcoin and Ether futures on March 18, pending regulatory approval. This development follows the successful introduction of U.S. dollar-denominated micro Bitcoin futures in May 2021 and micro Ether futures in December 2021.
Having previously introduced standard euro-denominated Bitcoin and Ether futures contracts in August 2022, along with options products for these cryptocurrencies, CME continues to diversify its cryptocurrency offerings.
The micro futures contracts are designed to be one-tenth the size of their respective underlying assets, providing a more accessible avenue for investors looking to gain exposure to Bitcoin (BTC) and Ether (ETH).
Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, noted the increasing demand for precise risk management tools as interest in Bitcoin and Ether continues to rise globally. He highlighted a substantial four-fold increase in volume for USD-denominated micro Bitcoin and micro Ether futures, underscoring the growing popularity of such products.
The decision to introduce euro-denominated contracts aligns with CME Group’s strategy to cater to a broader international market. Vicioso pointed out that 24% of Bitcoin and Ether futures volume originates from the EMEA region, emphasizing the need for tailored tools to manage crypto portfolios and navigate potential market movements.
“We continue to develop additional tools for clients there to hedge their crypto portfolios and express or take a view on potential market moves,” added Vicioso.
This expansion of offerings underscores CME’s ongoing commitment to the crypto derivatives market, building on its initial foray with the launch of Bitcoin futures in December 2017. Recent data reflects heightened interest in these products, with record-high open interest and trading volumes reported for bitcoin futures last month, coupled with notable increases in ether futures activity.
