Currently one bitcoin futures contract on CME is the equivalent of five bitcoins, worth $300,000, pricing out many potential customers.
The new future contracts will be worth the equivalent of 0.1 bitcoin, worth about $6,000, significantly increasing the potential level of participants.
“Since the launch of our Bitcoin futures contract in 2017, we have seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders,” said Tim McCourt, CME’s Head of Alternative Investment Products, before adding:
“The introduction of Micro Bitcoin futures responds directly to demand for smaller-sized contracts from a broad array of clients and will offer even more choice and precision in how participants can trade regulated Bitcoin futures in a transparent and efficient manner at CME Group.”
Their aim is to expand their market to “sophisticated active individual traders” in addition to potentially miners as well as institutional investors.
The new futures will also be fiat settled based on the CME CF Bitcoin Reference Rate and will start trading on May the 3rd.