With the newly launched Bitcoin by CME Group (Bitcoin) Micro contracts have risen sharply in the first two months of trading.
Since going live on May 3The Chicago Derivatives Market announced earlier this week that the trading volume of Micro Bitcoin futures contracts on the Chicago Mercantile Exchange has exceeded 1 million. CME executive Tim McCourt said that this new product is very popular among institutions and day traders seeking to hedge against bitcoin spot price risks.
With a price of 0.1 BTC, the size of a micro contract is one-tenth of 1 Bitcoin. In contrast, CME’s main Bitcoin futures contract unit is 5 BTC.
Brooks Dudley, Global Head of Digital Assets at ED&F Man Capital Markets, said: “We have seen more institutional trading volumes than we expected, which shows that the timing of smaller Bitcoin contracts is correct. ”
Institutions have Reduce their long-term exposure to Bitcoin Data from CoinShares shows that during the most recent adjustment period, the total outflow of funds from other cryptocurrencies was $79 million. As far as BTC is concerned, the newly liquidated tokens are being snapped up by long-term holders who are still confident in the long-term prospects of their investment.
More activity in the derivatives market indicates that traders are hedging their positions, speculating on Bitcoin’s short-term directional movement or both. Although derivatives trading has increased institutional exposure to Bitcoin, it has also become a source of pressure for spot holders. As Cointelegraph reported, Bitcoin and Ether on Friday were worth 6 billion U.S. dollars (Ethereum) Expired Caused considerable friction in the market, Some traders expect extreme volatility.
High volatility was reported in the second half of this week, with BTC prices falling by 13.6% from peak to trough between June 24 and 26.