The world's largest futures exchange, CME Group, reported that Bitcoin micro futures traded more than 100.000 contracts in its first week of launch.
Every day more investors demonstrate that they have a voracious appetite for financial products based on cryptocurrencies, . As reported CME Group On its Twitter account, during its first week of launch, more than 100.000 micro futures contracts were traded. Bitcoin (BTC), the industry-leading cryptocurrency by market cap.
CME Group is the world's largest futures and derivatives market, which has been entering the world of cryptocurrencies and digital assets since 2017. To date, CME offers futures for Bitcoin (BTC) y Ethereum (ETH), where large denominations are traded for both cryptocurrencies. In contrast, BTC micro futures were created as an option to offer smaller denominations of this digital asset, 1/10 of a bitcoin.
BTC micro futures allow smaller investors to expand their exposure to the cryptocurrency, which seems to be paying off.
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More exposure to cryptocurrencies
Tim McCourt, global head of equity indices and alternative investment products at CME Group, stated that Bitcoin micro futures help further strengthen its investment products, increasing the market's capabilities to help a broad range of clients, ranging from institutional investors to traders and active and sophisticated retail investors, to more effectively manage risk when they gain exposure to the price of bitcoin.
The futures exchange noted that it had traded a total of 2020 million standard-type Bitcoin futures contracts in the entire year of 2,2, so the trading of 100.000 BTC micro futures contracts in the first week is a good sign for the market as a whole. This figure also reveals the need for smaller investors to have financial products that offer exposure to Bitcoin and other crypto assets, as the interest and appetite of these investors to participate in the crypto industry is quite high.
As the company explained, Bitcoin micro futures contracts are aimed at active traders and investors with smaller portfolios and investment funds than the standard one, which trades with a dollar value equivalent to 5 bitcoins.
At the time of this writing, the market-leading cryptocurrency is trading at a price of $56.500 per unit, while its market capitalization remains above $1,05 trillion.
Interest in Bitcoin grows in 2021
Despite its success, CME’s cryptocurrency financial products cover only a fraction of the high demand for cryptocurrencies in the markets. Several major global banks and world-renowned financial institutions have reported that they are exploring the integration of cryptocurrencies, directly or indirectly, to meet the high demand of their clients and investors, who are increasingly demanding investment products related to digital assets.
Goldman Sachs is one of the most recent to confirm its entry into the crypto world, and is already offering bitcoin derivatives to its clients. Also, the Swiss bank UBS Group AG The bank said it is considering offering new investment products for bitcoins and other cryptocurrencies, although its products will be available only to its wealthiest clients, citing the risk and volatility of crypto assets as the reason for limiting its services.
On the other hand, the legendary investor Stanley Druckenmiller Druckenmiller recently stated that cryptocurrencies, such as Bitcoin, will continue to grow in adoption and interest, as the US dollar continues to lose its status as a global reserve currency. According to Druckenmiller, the monetary policies implemented by the FED are debasing fiat currency in the markets, due to the enormous amount of money that has been injected into the economy since the expansion of the COVID-19 pandemic.
“I feel comfortable with it [the dollar losing reserve currency status], that is my central case”, Stanley Druckenmiller said on CNBC.
The policies implemented by the FED are driving more investors, companies and users to deposit their capital and assets in cryptocurrencies, as alternative assets for the future store of value. Bitcoin is the main cryptocurrency adopted for the safe haven of value, which has led it to become the most powerful network in the world, highly robust, efficient and secure.
Continue reading: Chicago Mercantile Exchange (CME) launches new futures for Ethereum
