On Tuesday, the Chicago Mercantile Exchange Group (CME) reported a significant increase in its cryptocurrency contracts trading volume. In the first month of the year, the exchange saw its average daily volume (ADV) of crypto contracts reach 198,000, with a notional value amounting to $13.6 billion. This represents a 180% surge in cryptocurrency ADV compared to the same period last year.
The growth was particularly pronounced in the trading of micro-sized futures contracts. The CME’s micro bitcoin futures experienced a 255% increase, while its micro ether futures contracts saw a 223% jump. These micro contracts are scaled-down versions of the exchange’s standard bitcoin and ether futures, with each micro contract representing 0.1 of the respective cryptocurrency. The smaller size of these contracts facilitates more precise trading and risk management for participants.
In addition to offering full-sized futures contracts for bitcoin and ether, the CME also provides options on these contracts. These options allow traders to execute more complex strategies and better manage their risk exposure. Options contracts grant the holder the right, but not the obligation, to buy or sell the underlying futures at a predetermined price before a specified date.
Overall, the futures exchange recorded a total ADV of 25.7 million contracts across all markets in January. The CME continues to expand its cryptocurrency offerings and has recently announced plans to introduce options on Bitcoin Friday Futures (BFF) beginning Feb. 24, pending regulatory approval. This new product is expected to offer traders additional flexibility and hedging capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.