The Chicago Mercantile Exchange (CME) will launch option contracts, the underlying assets of which will be microfutures on Bitcoin and Ethereum. Trading in instruments will start on March 28, 2022, after approval by regulators.
“Option contracts will allow traders to effectively hedge market events with greater accuracy and flexibility, allowing traders of all sizes to access digital assets,” the exchange said in a statement.
CME launched Micro Bitcoin (MBT) in May, Micro Ethereum (MET) in December 2021. In both cases, the contract represents a tenth of the underlying asset and is the settlement.
According to the press release, during the circulation of instruments on the market, their total trading volume exceeded 5.2 million contracts.
Unlike futures, an option gives the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within the contract period.
Recall that in December 2021, the International Swaps and Derivatives Association began developing global standards for derivative financial instruments related to digital assets.