Major derivatives market Chicago Mercantile Exchange Group has expanded its crypto offerings to include an Ether microfutures product.
In a Monday ad, CME Group said it had launched an Ether (ETH) microfuture contract with a size of 0.1 ETH, giving institutional and individual traders another product for Ether exposure. The cash settled ETH micro derivatives offering is traded under the Globex code METZ1 and joins crypto derivative products on the exchange, including Bitcoin (BTC) microfutures, Bitcoin futures, options on Bitcoin futures, and Bitcoin futures. Ether futures.
The newest member of the CME Group cryptocurrency product family has arrived. Micro Ether futures are available for trading. https://t.co/bJoZWA7qZz
– CME Group (@CMEGroup) December 6, 2021
Tim McCourt, CME Group Global Head of Alternative Investment Products, said the offering would allow investors to “hedge their Ether spot price risk or execute Ether trading strategies more agilely.” Genesis Global Trading, one of the liquid providers for CME Group’s crypto derivatives offerings, said it had already executed a contract for the mimcrofutures product ETH in partnership with crypto investment firm XBTO.
“Ether’s microfutures contract fulfills the need for greater flexibility and more precise delta coverage,” said Joshua Lim, Genesis’ director of derivatives.
The announcement came after the price of ETH and many cryptocurrencies, including Bitcoin, fell significantly over the weekend. According to data from Cointelegraph Markets Pro, the price of ETH has dropped more than 15% since it hit an all-time high of $ 4,785 on November 8. As of this writing, the price of the second-largest cryptocurrency by market cap is $ 4,016, having fallen more than 13% in the past seven days.
CME Group first launched its Bitcoin futures contracts in December 2017 amid the big bullish trend.. The exchange’s Bitcoin microfuture product launched in May, with the company reporting on December 2 that it traded more than 3.3 million contracts.