CME Group Expands Derivatives to Micro-Euro Bitcoin and Ether Futures

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CME Group will expand its cryptocurrency derivatives offerings by launching Micro Bitcoin Euro and Micro Ether Euro futures in March, according to a February 20 press release.

The proposed two derivatives will be added on March 18 pending regulatory approval in a bid to protect investors in the market.

Available March 18*, CME Group is introducing a second currency pair on our Micro Bitcoin and Micro Ether futures, Euro-denominated Bitcoin and Ether futures contracts.

*Pending regulatory review https://t.co/juxh2N2wDr

— CME Group (@CMEGroup) February 20, 2024

As cryptocurrency adoption grows, more investors increase their exposure to the top two digital assets to make profits. From spot trading to derivatives, cryptocurrency-related products have experienced major growth since the last quarter of 2023. This expansion highlights the growth of cryptocurrency derivatives as investors seek new hedging tools.

CME Group Meeting Investor Needs as Crypto Adoption Soars

CME Group stated that the success of previous products led the company to propose this increase to give clients diverse options. These two new derivatives around Bitcoin and Ethereum will allow investors to significantly hedge their crypto exposure.

The Euro-based features come as it is the second highest traded fiat behind the USD contract. The release stated that the latter records a major success spurring need for more.

Giovanni Vicioso, the Head of Cryptocurrency at the CME Group stressed the need to empower market participants with more tools.

“Global investors have sought more precise tools to manage their risk as interest for bitcoin and ether grows. As such, we have seen a four-fold increase in volume in our USD-denominated Micro Bitcoin and Micro Ether futures.” 

Regionally, the European, Middle Eastern, and African (EMEA) markets have made up 24% of CME Group’s Bitcoin and Ether futures volume. Vicioso added that plans to give users more tools to hedge their portfolios are part of the company’s plans.

TP ICAP Strengthens Partnership

Financial services firm TP ICAP will provide block facilitation services for both products rolled out by CME Group.

Sam Newman, the Digital Asset Head of Broking at TP ICAP stated that the company’s partnership with CME Global products will continue to connect market participants.

“Our global Digital Assets business has been providing price discovery and execution services on CME Group’s suite of crypto derivatives since the start of 2020, leveraging TP ICAP’s strengths in connecting market participants as the foundation for our Digital Assets proposition,” said Sam Newman, Digital Assets Head of Broking at TP ICAP.” 

Newman added that investor interest in cryptocurrency derivative products has seen an increase in recent years.

Giving users more options will help consolidate gains recorded in the market. CME Group’s Euro-denominated crypto micro features contracts will expand diverse product offerings, particularly for European users, he added.

This development comes as the wider cryptocurrency market records huge inflows on the heels of spot Bitcoin ETF approvals by the United States Securities and Exchange Commission (SEC).

The move has sparked surging institutional appetite in the digital asset market.

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