CME Group adds Micro Ether Futures to derivatives offerings

Leading global derivatives marketplace CME Group has added Micro Ether Futures to its growing array of cryptocurrency products.

Micro Ether Futures (MET) are sized at 1/10 of one Ether ($4,060) – approximately $400 – and provides traders with an “efficient, cost-effective way to manage exposure to one of the largest cryptocurrencies by market capitalisation” and to “further optimise trading strategies”.

The launch of MET marks the exchange’s second ‘micro’ cryptocurrency product this year after the addition of Micro Bitcoin Futures (MBT) to CME’s portfolio in May.

CME also offers Bitcoin and Ether futures products to customers seeking cryptocurrency exposure.

Deemed as the “world’s leading and most diverse derivatives marketplace”, CME Group offers clients futures, options, cash and OTC markets and data analysis on a vast array of contracts and assets.

“The launch of Micro Ether futures underscores the significant growth and liquidity we have seen in our cryptocurrency futures and options,” said Tim McCourt, Global Head of Alternative Investment Products at CME Group.

“Sized at one-tenth of one Ether, Micro Ether futures will provide an efficient, cost-effective way for a range of market participants – from institutions to sophisticated, active, individual traders – to hedge their spot Ether price risk, all while retaining the features and benefits of CME Group’s larger-sized Ether futures.”

Traders should, however, be aware of the implications of ‘institutional adoption’ and capital in cryptocurrencies.

As pointed out by Coin Rivet’s Oliver Knight during the May launch of MBT, the introduction of CME products can lead to major pullbacks in the market – as evidenced in December 2017 when the launch of Bitcoin Futures contracts marked “the top of Bitcoin’s hype-fuelled bull market”.