The global derivatives marketplace CME Group plans to expand its cryptocurrency derivatives suite with Bitcoin and Ether futures. Dubbed Micro Bitcoin Euro and Micro Ether Euro futures, the products will be launched on March 18, pending regulatory approval.

CME Group Enhances Crypto Hedging

Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, mentioned: "The launch of these new Micro Euro-denominated contracts will provide clients with additional products to more efficiently hedge Bitcoin and ether exposure in the second-highest traded fiat behind US dollar-based contracts."

"Year-to-date, 24% of Bitcoin and ether futures volume at CME Group has been transacted from the EMEA region, and we continue to develop additional tools for clients there to hedge their crypto portfolios and express or take a view on potential market moves."

According to the press release, adding Euro-denominated contracts offers investors more efficient avenues for hedging exposure to the top cryptocurrencies . Micro Bitcoin Euro and Micro Ether Euro futures will mirror their USD-denominated counterparts. These futures will be listed on CME Group, providing clients with standardized contracts to manage their crypto portfolios.

During the second quarter of 2023, there was a significant surge in institutional investments in Bitcoin and Ether futures, influenced by the escalating value of crypto assets and the surge in applications for spot Bitcoin ETFs. According to a report by Finance Magnates, CME Group reported a notable growth in the number of institutional investors holding Bitcoin and Ether futures contracts.

Bitcoin and Ether Futures Market

The CME Group reported that an average of 107 institutional investors held at least 25 Bitcoin futures contracts, while 62 held Ether futures contracts during the same period. This surge in interest highlighted the growing acceptance of crypto derivatives as legitimate investment tools.

The rise in institutional investments paralleled the upward trajectory of Bitcoin and Ether prices. Bitcoin witnessed a surge of 84% in the first half of last year.

Open interest in standard Bitcoin futures contracts surged 15% year-over-year, indicating a robust market demand for Bitcoin exposure. The rising interest among institutional clients was partly attributed to the applications for spot Bitcoin ETFs in the US.