As per the latest reports, a new Bitcoin (BTC) derivatives product is set to be launched by The Chicago Mercantile Exchange (CME). According to the firm, once the new product is launched, it will make the lives of the traders much easier in speculating the fractional units. The traders will be able to speculate the flagship currency of the fractional units.
It has been reported that the Micro Bitcoin futures contract by the CME Group is set to be launched on the 3rd of May, 2021. As of now, the futures contract for Micro Bitcoin is pending approval from the regulatory authority. It has been unveiled that once approved and launched, the value of the Micro Bitcoin (BTC) will be 0.1 BTC.
It has been revealed that with the launch of the smaller contract size, the participants of the market will have access to extra tools. With the help of this additional tool, the participants will be able to hedge the price risk of their Bitcoin (BTC).
The above announcement was made by the Chicago Mercantile Exchange (CME) on Tuesday, March 30, 2021. At the time of writing, the unit for the Bitcoin for Chicago Mercantile Exchange (CME) is 5 BTC.
The global head of equity index for the Chicago Mercantile Exchange (CME), Tim McCourt also talked about the launch of the Micro Bitcoin Futures.
As per him, as the cryptocurrency industry grows and demand for Bitcoin (BTC) hits an all-time high, it was necessary that something more innovative long-term was introduced into the Bitcoin (BC) Futures sector.
There is currently an enormous amount of demand from clients and businesses for small-sized contracts. This is the reason why the Chicago Mercantile Exchange (CME) came to this conclusion and introduced Micro Bitcoin (BTC) Futures into the market.
The Micro Bitcoin Futures contract will offer the participants with more precision and choice when it would come to Bitcoin futures’ regulated trades. The firm aims to provide participants with an efficient and transparent platform where they can perform regulated trades for Bitcoin futures.
McCourt stated that this is where the Chicago Mercantile Exchange (CME) comes into play and offers participants numerous opportunities.
It was back in December 2017, when the Chicago Mercantile Exchange (CME) had launched its Bitcoin Futures Contract. When it launched, the only competitor it had in the market was the Chicago Board Options Exchange. It was in the same month of December 2017, when the Chicago Board Options Exchange had introduced the first derivatives contract.
However, the Chicago Board Options Exchange was not able to keep the project alive and after some time, it ended up abandoning the entire project altogether.
The CME is hopeful that the new Micro Bitcoin Contract will prove to be another stepping-stone for the increase of adoption level in the cryptocurrency as well as Bitcoin (BTC) sector.