Bitcoin fans just got a lower-cost way to speculate on the world's largest cryptocurrency with micro futures from CME Group Inc. “Smaller contracts will allow more people to participate and increase liquidity,” said John Wu, president of the crypto firm Ava Labs. “This will allow hedging and ultimately lower volatility in Bitcoin. In the long run, it will be a good thing for utility in crypto.”
Micro Bitcoin futures will be one-tenth the size of one Bitcoin and settle on a cash basis, the exchange said in a statement Tuesday. The current notional contract is about $300,000, while the micro futures will be about $6,000 at current levels, according to Tim McCourt, global head of equity products at CME. This will allow participants to use them for smaller trades with greater precision and risk management.