CME is planning to launch Micro Bitcoin Futures starting May 3rd. They will be .1 Bitcoin. CME Group set to launch Micro Bitcoin futures (cointelegraph.com)
That makes sense. Hope that increases the volume. currently btc futures volume is at the pathetic level of about 10k / day
No it doesnt make sense. The Big contract at $250,000 notional. And the micro contract at $5000 notional, is way too small. That is just greed on CME's part to generate more exchange fees. You want to control 1 BTC worth of futures, you pay CME 10 lots of fees. It should have been around 1/10th the large contract, not 1/50th.
Looks like the full size contract currently has a daily range of about $20-30k so the micro will have a range of about $2-3k. This micro will still more volatile than some full sized contracts such as CL and NG.
That is not their point. They want to let smaller accounts to be able to play the futures game. The gamers want the action, the casino wants its cut, everybody will be happy. It doesn't matter if it is crypto or oil or wheat. As long as there is leverage and the underlying moves, the gamers want to play.
"CME Group to Launch Micro Bitcoin Futures on May 3" https://www.cmegroup.com/media-room...group_to_launchmicrobitcoinfuturesonmay3.html https://www.cmegroup.com/trading/micro-bitcoin-futures.html "At 1/10 the size of one bitcoin," "Product code MBT" "Contract size 0.10 bitcoin" https://www.cmegroup.com/education/...n-futures-frequently-asked-questions.html#ten FAQ https://www.cmegroup.com/education/...tcoin-futures-frequently-asked-questions.html .
Sounds exciting and high time this should be done. Super excited to benefit from the 1/50th of the contract size as was done by the larger contract. In fact, I’ve studied that there would be more transparency on the regulated exchange and futures while all the traders get to see the same prices and quotes.