In the crypto economy, what keeps institutions fresh is the expansion of their products. It appears that the Chicago Mercantile Exchange (CME) is in this direction, as an announcement from the company indicates a plan to introduce micro Ether Futures to its products list.
Although it is still pending regulatory approval, the product is slated to launch on December 6 and it would be cash-settled using the CME CF Ether-Dollar Reference Rate which is a daily reference price of Ethereum in USD.
While speaking on the new product, Giovanni Vicioso, CME Group’s senior director of equity and alternative investment products said “We’ve had requests from clients who are interested in accessing ether using our contract either for exposure or to manage ether price risk…for a smaller contract.”
Interestingly, this is not the first micro futures offered by the CME, in May, it added the micro Bitcoin futures to its platform. This way, one-tenth of the size of the asset can be invested in by individual investors or institutions can invest in the contract.
CME Group Global head of alternative investment products, Tim McCourt, noted that the micro ETH futures contract aim to broaden its investor-base by enabling more of the smaller investors. He explained that the initial Ether futures introduced months ago had boosted the company’s liquidity. According to him, Ether’s price has gone more than double since the addition of the Ether futures.
In McCourt’s comment on the Micro Ether, “Micro Ether futures will offer even more choice and precision in how they trade Ether futures in a transparent, regulated and efficient manner at CME Group.”