CME Group to Launch Micro EUR Futures for BTC and ETH

CME Group is launching euro-denominated futures for Bitcoin and Ether. It will serve the growing demand among European investors for regulated cryptocurrency investment vehicles. It will increase the mainstream digital assets acceptance.

About the New Micro EUR Futures Contracts

These new futures contracts are denominated in euros. The size of Bitcoin (BTC) contracts is 5 BTC each, and Ether (ETH) contracts are 50 ETH each. These contracts are based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively, and are cash-settled. They will provide tools for hedging and speculating in cryptocurrencies without directly holding the assets.

Benefits For Traders:

This launch will offer numerous benefits to traders and investors:

Currency Diversification

Investors can trade futures in euros, diversify their currency exposure and hedge against volatility. It removes the need for currency conversion and reduces the related costs and complexities.

Enhanced Accessibility

Micro-futures contracts are smaller than traditional futures contracts. It makes them more accessible to multiple investors. Individuals and smaller institutional investors can participate in the cryptocurrency market with a lower capital requirement. It provides a flexible and scalable investment option.

Risk Management

These euro-denominated futures contracts provide effective tools to hedge cryptocurrency exposure. Investors can protect themselves against adverse price movements in BTC and ETH markets, managing risk in a more currency-relevant format.

Increased Liquidity

CME’s futures markets have deep liquidity. They provide traders with the ability to enter and exit positions easily. These Micro EUR Futures will attract many participants and further enhance liquidity. It will provide tighter bid-ask spreads.

Investment Opportunities

With futures contracts, traders can speculate on the future price movements of BTC and ETH without owning the cryptocurrencies.

It will benefit those using their positions to intensify returns despite increased risk.

About CME Group

CME Group is one of the world’s leading and most diverse derivatives marketplaces. It offers innumerable futures and options products for risk management. Its exchanges — CME, CBOT, NYMEX, and COMEX — provide multiple global products across all major asset classes. It includes futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate. CME Group simplifies price discovery and risk transfer and makes the global financial system more stable and efficient.

Future Outlook

Euro-denominated futures address a need for risk management solutions tailored to investors outside the U.S. This initiative will enhance accessibility and offer European investors more precise instruments for managing their exposure to the volatile cryptocurrency market. They will enhance cryptocurrency adoption and investment in Europe.

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