Bitcoin and Ethereum Futures: CME Launches European Micro Products

Key Takeaways

• CME launches micro euro Bitcoin and Ether futures to meet growing demand.
• These contracts are 1/10th the size of existing ones, lowering entry barrier.
• TP ICAP supports the launch by providing block facilitation services.

CME Group announced  its intention to launch micro euro-denominated Bitcoin and Ethereum futures, with a planned start date of March 18, pending regulatory approval.

These new offerings will be equivalent to their US Dollar counterparts. Each contract will represent 10% of a Bitcoin or Ether’s value.

CME Group to Launch Euro-Denominated Bitcoin and Ether Futures

The CME Group is broadening  its crypto product range to include versions denominated in euros. These micro contracts aim to lower the barrier to entry for investors by reducing the required investment amount. Now, the company is aiming to build on the success of its 2021 launch of USD-denominated micro Bitcoin and Ethereum futures.

According  to Giovanni Vicioso, CME Group’s global head of cryptocurrency products, there’s a growing interest in Bitcoin and Ethereum. This time, there has been highlighted by a quadruple increase in trading volume for the dollar-based micro futures.

Vicioso also said the introduction of micro euro-denominated futures could offer clients more efficient tools for hedging exposure to BTC and ETH. As a result, it would, potentially, cater to demand for the euro, the second-most traded fiat currency for these contracts.

Launching Euro-Denominated Contracts

CME Group has reported  a notable increase in open interest for Bitcoin futures, recently surpassing Binance to become the leader in this area.

As of February 20, 2024, CME Group’s open interest in Bitcoin futures reached $6.7 billion, eclipsing Binance’s $5.91 billion. This development coincides with CME’s introduction of micro euro-denominated Bitcoin and Ether futures.

Vicioso highlighted  that, so far this year, 24% of Bitcoin and Ether futures trading volume at CME Group originated from the EMEA region. This, therefore, underscores the global demand for diversified cryptocurrency investment options.

TP ICAP Backs CME Group’s New Euro-Denominated Crypto Futures

Sam Newman, the head of digital assets broking at TP ICAP, has announced  the company’s endorsement of CME Group’s recent initiative to launch micro euro-denominated Bitcoin and Ether futures. As part of their support, TP ICAP will offer block facilitation services for these innovative crypto derivatives.

This move highlights TP ICAP’s commitment to advancing the cryptocurrency derivatives market. It also shows its support for products that enable investors to navigate the crypto space more efficiently.

Newman’s announcement  underscores the importance of collaboration within the financial industry to foster the growth of the digital assets sector, particularly in derivatives that cater to a diverse global investor base.