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CME introduces micro Ether futures


One of the world’s biggest derivatives marketplaces Chicago Mercantile Exchange (CME) will launch micro futures based on the Ethereum (ETH) cryptocurrency, according to a press release.

Trading of new derivatives will begin on December 6. Each contract will be a tenth of ETH.

“Since the launch of Ethereum futures in February, we have seen a steady increase in liquidity for these contracts, especially among institutional traders,” said Tim McCourt, Managing Director of CME Group. At the same time, the price of ether futures has more than doubled since the launch of the instrument. This has created a demand for micro-contracts that make the market more accessible to a wide range of participants.

ETH updated the historical maximum

Moreover, like other crypto derivatives on CME, Ethereum micro futures will be calculated, without assuming the delivery of a physical asset.

Amid the background of the news, ETH updated the historical maximum at $4477.46 paired with USDT on the Binance exchange.

Over the past day, Ethereum has grown by 3.4%, and its capitalization has reached $531.53 billion, according to CoinGecko.

Bitcoin futures

Earlier in May, CME began trading micro futures for Bitcoin (BTC). On May 3, the CME Group launched trading with a new instrument based on the first cryptocurrency – Micro Bitcoin futures. Futures under the ticker MBT calculated in cash for a tenth of Bitcoin. Announcing the instrument in March, CME said that a smaller contract would allow hedging price risks in the spot market and implementing trading strategies in an “efficient and cost-effective way.”

Recall that previously in October CME improved its position among exchanges. The exchange has moved from fourth to second place in the ranking of the largest platforms for open interest in Bitcoin futures.

In addition, CME’s position is being improved by the growing confidence among institutional investors in the U.S. Securities and Exchange Commission (SEC) approval of Bitcoin ETFs. The premium of futures to spot price in terms of annual monthly contracts exceeded the same indicator of unregulated platforms.

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