CME Group announced plans on Tuesday to launch micro-euro-denominated bitcoin and ether futures, which are scheduled to launch on March 18 if regulatory approval is received. These euro-based offerings, which each represent a tenth of the value of the corresponding cryptocurrency, will be identical to their dollar-based counterparts in the United States.
CME Group Announces the Launch of Micro Bitcoin and Ether Futures Denominated in Euros
The CME Group is now growing its portfolio to include euro-centric versions of micro bitcoin (BTC) and micro ethereum (ETH) futures, which will be introduced in USD in 2021. By lowering the investment cost, these microcontracts, denoting a tenth of a bitcoin or 0.1 ether, increase the accessibility of investment opportunities.
For a predetermined period of time, each contract essentially gives investors price exposure to 0.1 BTC or 0.1 ETH. The CME Group’s worldwide head of cryptocurrency products, Giovanni Vicioso, stated that demand for bitcoin and ethereum is still rising.
The company reports a “four-fold increase in volume” for its equivalents denominated in US dollars. Vicioso said. The CME Group official continued, “The introduction of these new micro euro-denominated contracts will give clients additional products to more effectively hedge bitcoin and ether exposure in the second-highest traded fiat behind U.S. dollar-based contracts.”
The announcement comes amid a notable increase in overall open interest for bitcoin (BTC) futures. In terms of open interest (OI) for BTC-based futures, CME Group recently surpassed Binance.
CME Group reported an OI in BTC futures of $6.7 billion as of February 20, 2024, surpassing Binance’s OI, which is currently at about $5.91 billion. Vicioso stated that 24% of the bitcoin and ether futures volume at CME Group has been performed from the EMEA region, in reference to the recently introduced micro euro-denominated crypto futures.
TP ICAP’s head of broking for digital assets, Sam Newman, disclosed that the company is backing CME’s most recent venture. “TP ICAP will provide block facilitation services to this product, thereby supporting this market-defining crypto derivative from CME Group,” stated Newman.
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