Bitcoin and Ethereum Traders Now Have a New Way to Reduce Market Risk

Bitcoin and Ethereum Traders Now Have a New Way to Reduce Market Risk
Bitcoin and Ethereum Traders Now Have a New Way to Reduce Market Risk

Two new products have been developed by the world’s top financial derivatives marketplace to assist Bitcoin and Ethereum hedge market-moving events efficiently.

“It aims to debut options on Micro Bitcoin and Micro Ether futures on March 28, pending regulatory assessment,” CME Group said on Tuesday (March 1).

According to a press release from CME, the new Micro Bitcoin and Micro Ether options contracts will be “one-tenth the size of their respective underlying tokens and will provide a wider range of market participants – from institutions to sophisticated, active, individual traders – with more ways to manage their exposure to the top two cryptocurrencies by market capitalization.”

They will “complement the existing Bitcoin options contracts, sized at five bitcoin and launched in 2020” and will “allow clients to express long- or short-term views with a choice of monthly as well as Monday, Wednesday and Friday weekly options expiries.”

Tim McCourt, Global Head of Equity and FX Products, CME Group, had this to say:

“We have worked closely with clients and the broader industry to establish robust and liquid cryptocurrency futures and options markets at CME Group. At less than a year old, nearly 5.2 million combined Micro Bitcoin and Micro Ether futures contracts have changed hands.

Building on the strength and liquidity of the underlying contracts, our micro-sized options will enable traders of all sizes to efficiently hedge market-moving events with greater precision and flexibility or fine-tune their cryptocurrency market exposure.“

Here is what officials of top trading companies had to say about the move.

Joshua Lim, Head of Derivatives at Genesis Global Trading, said:

“Micro options provide the targeted risk exposure that investors are looking for. We are excited to offer liquidity on the broad and growing family of CME Group cryptocurrency products.“

And John Harris, CEO of Akuna Digital Assets, added:

“Akuna Capital is looking forward to providing liquidity to CME Group options on Micro Bitcoin and Micro Ether futures contracts. We believe that options on these contracts will allow existing market participants greater flexibility when seeking cost-efficient exposure as well as opening the market to new participants who prefer the more granular sizing.“


CME Group announced on March 30, 2021, that it would “extend its range of crypto derivatives with the May 3 release of a new Micro Bitcoin futures contract.” CME Group also stated on November 2, 2021, that it would “extend its crypto derivatives products with the release of Micro Ether futures on December 6.”

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