In Brief:
- CME Group launched new micro Ether futures to expand its crypto offerings.
- The Size of Ether futures contracts will be 1/10 or 0.1 ETH.
- The Ethereum ETF has generated 6,864 daily trading volume.
Today, leading U.S. derivatives exchange, Chicago Mercantile Exchange Group has announced to launch a new crypto derivative offerings, micro Ether futures, which makes it second micro crypto product this year.
As per the Monday announcement, The size of the Ether future contract will be around 0.1 ETH, which will allow institutional and individual traders to explore the new derivative products.
The Micro Ether futures are cash-settled, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. Micro Ether futures are subject to the rules of the CME group.
The micro ether derivatives offerings are listed under the Globex code METZ1 along with other crypto derivatives products such as micro Bitcoin (BTC) futures, Bitcoin futures, options on Bitcoin futures, and Ether futures.
Tim McCourt, CME Group’s global head of alternative investment products, said the offering would allow investors “to hedge their spot Ether price risk or more nimbly execute Ether trading strategies.”
Genesis Global Trading, liquid provider of CME Group’s crypto derivatives offerings, said that they have already experienced offerings of micro ETH futures products in partnership with crypto investment firm XBTO.
“The Micro Ether futures contract fills a need for greater flexibility and more precise delta hedging,” said Joshua Lim, Genesis’ head of derivatives.
In May, the exchange launched a micro Bitcoin derivative, which has reported trading of more than 3.3 million till last Thursday. CME Group also reported a daily trading volume of 43,286 for a micro-bitcoin futures product.
Also Read: Investment Firm Kelly Files for Ethereum Futures ETF
At present, micro-bitcoin future derivatives are more in demand than Bitcoin future derivatives as it has just accumulated 12,868 trading volumes. Moreover, the daily trading volume for Ether’s future derivatives revolved around 6,854.
