CME Sees Record-Breaking Crypto Volumes in January, Boosted by Micro Futures Contracts
The Chicago Mercantile Exchange Group (CME) reported a surge in its crypto trading activity for January, with the exchange setting a new record for average daily volume (ADV). The CME handled an ADV of 198,000 crypto contracts, with a total notional value of $13.6 billion in the first month of the year.
In its press release on Tuesday, the CME revealed a 180% year-over-year increase in its crypto ADV. Micro bitcoin (BTC) futures experienced a massive 255% growth, while micro ether (ETH) futures surged by 223%.
CME’s micro contracts, which represent 0.1 of each cryptocurrency, provide a more precise way to trade and manage risk compared to the larger standard contracts—5 BTC and 50 ETH. These micro contracts have become increasingly popular due to their smaller size, making them ideal for more detailed trading strategies.
In addition to the regular and micro futures contracts, the CME offers options contracts on both bitcoin and ether futures. These options allow traders to implement more complex strategies to adjust their risk exposure. With options, traders have the right (but not the obligation) to buy or sell futures at a predetermined price on or before a set date.
Overall, CME saw a total ADV of 25.7 million contracts in January. The CME also revealed plans to introduce options on Bitcoin Friday Futures (BFF) starting February 24, pending regulatory approval.
