CME Group’s (Chicago Mercantile Exchange) micro-bitcoin futures have already traded more than one million contracts. This tool allows institutions and retail traders to invest in the cryptocurrency at a price point lower than 0.1 bitcoin. The contract has only been available for seven weeks and the demand shows that there is still room for new derivatives in the crypto market.
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When CME launched a new batch of Bitcoin derivatives contracts for smaller investors almost two months ago, it wasn’t expecting this much attention. However, based on the volume numbers, there seems to be a need for more elaborate Bitcoin service in the market. Now, with more than a million micro-Bitcoin futures contracts changing hands, this is seen as a big milestone for this very young service. Considering that cryptocurrency is still a niche market, this is a significant achievement.
The design of this product is key to its success, according to Tim McCourt, head of global equity index and alternative investment products at CME Group:
Micro bitcoin futures launched in May and opened the regulated crypto derivatives market to micro investors. With these contracts, CME addresses two main concerns for potential cryptocurrency investors: high price point entry and the need for regulated instruments.
Ninjatrader Group CEO Martin Franchi explained that these contracts are becoming more popular. Franchi emphasized: