CME ETH Futures Hits $1B in Volume; Newly Launched Micro BTC Contracts Not Seeing Traction

The narrative behind this bull market has been largely the institutions adopting crypto assets. This has been evident in the growing market share of CME in the bitcoin futures market with $2.26 billion in open interest.

In the past month, however, the trading volume on CME bitcoin futures has slowed down, with the Bitcoin price action lacking momentum after hitting $65k in mid-April.

However, we have come a long way despite having $4 billion as the highest volume in the past month, down from $6 billion in late February. In 2019 summer, CME bitcoin futures were doing a record $500 million in notional volume, while now $2 billion is the norm.

So, it is possible the same traction would be seen by micro bitcoin futures launched by CME earlier this month, which are one-tenth the size of Bitcoin, 0.1 BTC. The usual CME bitcoin futures contract involves 5 BTC.

Currently, there’s not much happening with these micro BTC contracts as only 18,600 contracts (1,860 BTC) have traded so far compared to 6,200 contracts (31,00 BTC) on regular contracts.

This could be because of lack of awareness or high fees, noted analyst @austerity_sucks.

While it would take time to reach the CME’s regular Bitcoin futures contracts, in itself, Micro Bitcoin Futures (MBT) had the third largest opening day volume in CME Group’s history, after the E-mini S&P & Micro E-mini S&P.

Meanwhile, Ether futures continue to gain traction, which was launched only three months back as the price of Ether continues to hit new ATHs. On Thursday, ETH/USD hit $3,610 on Coinbase and 0.0635 BTC earlier this week.

For the first time, on May 4th, CME Ether futures hit $1 billion in volume while the open interest is around $470 million, as per data analytics platform Skew, which Coinbase recently acquired for an undisclosed amount.

As we reported, institutions have begun to take notice of the second-largest cryptocurrency. The concern of Ethereum’s economic policies and relatively high inflation rate compared to bitcoin gets addressed with the upcoming release of EIP 1559.

The upgrade coming in July followed by the growing staking of ETH and merge with ETH 2.0 should become even more attractive to retail and institutions investors alike.

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