Cme Cryptocurrency Futures

By Craig Bewick
NOV 18 2021

It was another relatively quiet day in CME Group’s financial and commodity markets as stocks were trading mixed in early afternoon action, US Treasury yields were just slightly lower, Gold futures prices ticked down and WTI Crude Oil futures prices rose but remain below $80 per barrel.  While there is still no shortage of potentially market-moving news such as inflation, the potential for additional government spending and renewed focus on the debt ceiling, among others, for today at least, the price action was fairly muted. 

We thought it would be a good opportunity to showcase CME Group’s cryptocurrency offering and make sure all of our readers know about the impending launch of Micro Ether, scheduled for trade date December 6th.  The continued volatility in the cryptocurrency market has been well-documented and the recent moves in Bitcoin futures prices underscore that trend.  CME currently offers

  • Standard Bitcoin Futures (5 Bitcoins)
  • Options on Bitcoin
  • Micro Bitcoin (1/10 of one Bitcoin)
  • Standard Ether Futures (50 Ether)

Pending regulatory approval, CME Group plans to launch a Micro Ether contract on December 6th that will have the notional value of 1/10 of one Ether.  At today’s price, this would represent about $400 of notional exposure to Ether. 

We'll leave off with a graph of recent Bitcoin futures price and options volatility from QuikStrike.  As you can see, even with the recent price break in the price of Bitcoin, we’ve not seen a real uptick in the options implied volatility level.  The out of the money Puts are trading slightly higher than the Calls, but not by as much as we saw when the price fell during the summer. 

ABOUT THE AUTHOR

Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development. 

Connect with Craig at activetrader@cmegroup.com

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