According to the latest news, the Chicago Mercantile Exchange is about to add a bitcoin derivative, which is a good thing for bitcoin lovers and even bitcoin itself.
It is understood that CME is expected to officially launch a futures product called Mini Bitcoin in early May this year. It is currently waiting for the regulatory approval, and it will be launched after the review. According to the news released by CME, the value of each futures contract will be only 0.1 Bitcoin, which is significantly lower than the standard Bitcoin futures with a size of 5 Bitcoins. At the same time, this derivative is about to replace cash settlement.
CME stated that the mini-bitcoin futures contract will greatly improve user efficiency and cost utilization. At the same time, it will help investors to adjust bitcoin risk exposure, thereby solving the deficiencies of the initial trading strategy and improving transaction accuracy.
According to data, since the launch of Bitcoin futures at the end of 2017, CME has also launched Bitcoin options in recent years, as well as futures for the world’s second largest cryptocurrency, Ethereum. Since the beginning of this year, the average daily transaction of CME’s Bitcoin ETF has reached 13,800, which is equivalent to approximately 69,000 daily Bitcoin transactions by investors.
The CME’s global head of stock index and alternative investment products said, “Since the launch of Bitcoin futures in 2017, we have been pleasantly surprised to find that in the cryptocurrency derivatives market, its liquidity and participants have shown a significant and steady increase, especially the institutional traders. The emergence of mini-bitcoin futures meets the urgent needs of many users for small-scale contracts. It can provide market traders with more options and provide players with higher investment precision. “
CME launches new Bitcoin derivatives at the right time. This year, the price of Bitcoin is soaring, while both retail and institutional investors are accelerating the influx into the Bitcoin market.
With the help of many institutional investors, the market value of Bitcoin has doubled ten times last year. In the fourth quarter alone, the price of Bitcoin has soared by 170%. In the first half of this month, Bitcoin broke through US$60,000 for the first time. Within three months, it doubled its market price and increased 13 times from the low point in March last year.
Soon after Bitcoin hit a record high, many industry analysts have anticipated a new round of strong growth for Bitcoin. Especially with the implementation of new relief bill in the United States, the inflow of funds into the Bitcoin market will continue to increase.