CME to Offer Micro Euro Crypto Contracts

On the back of what it says was a record volume month in January for its cryptocurrency products at 71,000 contracts per day, CME Group has announced plans to extend its crypto futures offering with the launch of micro bitcoin euro and ether euro contracts on 18 March.

The launch is subject to regulatory approval and the new contracts will be sized at one-tenth of their respective underlying cryptocurrencies as well as listed on, and subject to, the rules of CME. The exchange launched its first micro crypto futures contract, bitcoin USD in May 2021, and followed that with an ether launch in December of that year. In 2022, the Merc launched options on the micro crypto contracts.

“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,” says Giovanni Vicioso, global head of cryptocurrency products at CME Group. “The launch of these new micro euro-denominated contracts will provide clients with additional products to more efficiently hedge bitcoin and ether exposure in the second-highest traded fiat behind US dollar-based contracts. Year-to-date, 24% of bitcoin and ether futures volume at CME Group has been transacted from the EMEA region, and we continue to develop additional tools for clients there to hedge their crypto portfolios and express or take a view on potential market moves.”

Sam Newman, digital assets head of broking at TP Icap, adds, “TP Icap will support this market-defining crypto derivative from CME Group by providing block facilitation services to this product. 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. Interest in crypto derivatives has seen huge worldwide growth in recent years and these new euro-denominated micro futures contracts will help further expand the accessibility and utility of crypto derivatives, particularly within Europe.”