CME Offers Micro Ether Futures as ETH Approaches ATH Above $4,4K – News Couple

CME Offers Micro Ether Futures as ETH Approaches ATH Above $4,4K

The Chicago Mercantile Exchange (CME), one of the largest derivatives markets in the world, continues to expand its crypto derivatives offering by adding a new product based on Ether (ETH).

The Chicago Mercantile Exchange announced on Tuesday that it plans to launch a micro-ether futures contract, with a volume of 0.1 Ethereum, allowing a new type of Ether exposure for institutional and retail traders.

The new product will become the fourth crypto derivatives product launched by CME and is expected to be launched on December 6, 2021, pending regulatory approval.

The news comes as Ether settled near all-time highs after the cryptocurrency hit an all-time high on Friday, reaching $4,460. At the time of writing, the second largest cryptocurrency by market cap was trading at $4,438, according to data from crypto-tracking website CoinGecko.

Tim McCourt, Global Head of Alternative Investment Products at CME Group, noted that the launch of Micro ETH futures contracts aims to attract more investors to the market by enabling smaller investments.

“Since the launch of Ether futures in February, we have seen consistent growth in liquidity in these contracts, particularly among institutional traders,” McCourt noted, adding that the price of Ethereum has “more than doubled” since these contracts were introduced.

He added, “Micro Ether futures will provide more choice and accuracy in how they trade Ether futures in a transparent, regulated and efficient manner at CME Group.”

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Micro Ether futures will join CME Group’s growing portfolio of crypto derivatives, including Micro Bitcoin futures, which began trading in May 2021. With each contract worth 0.1 BTC, the company has traded more than 2.7 million contracts to date. The first bitcoin futures contract was launched by CME on December 17, 2017.