- 5 March 2022
- Posted by: Cryptovalues
- Category: Cryptovalues News
New instruments that take their cue from cryptos testify to the fervour of the sector and the demands of customers, in this case those not too large, who want to be protagonists even if with a lower minimum investment level. In fact, the most important exchange for financial derivatives, the CME, the Chicago Mercantile Exchange will launch on March 28 micro option contracts, which will reproduce 1/10th of the exposure of full contracts, both on Bitcoin and Ethereum.
Nearly two years after the launch of the world’s first exchange-traded crypto options, CME Group is continuing with its policy of offering new products for those who love the digital currency sector through these two mini option contracts on the most important cryptos by capitalization.
Closely related to their bigger brothers, the smaller contracts are based on the same underlying benchmark indices and will be cash-settled. They will be contracts worth one-tenth as much as the underlying and so will be at least in the case of Bitcoin 0.5 coins (the “full” options contracts represent 5 BTC each). And the same will apply to Ethereum, which will also have access to contracts that will be smaller in size and therefore more pliable for those who want to invest, who will also have available for options a contract, also from 28 March, of 0.1 Eth.
For investors interested in this new trading vehicle, the new contracts follow European-style options. That is, they can only be exercised on the expiry date of the option and CME said it will offer traders the opportunity to save on margins through netting. The idea of offering these contracts derives, according to CME’s own confirmation, from the very large volumes recorded on all types of derivatives that have Bitcoin as their underlying and lately Ethereum as well, and responds to the not inconsiderable need to provide more targeted risk exposure.