Bitcoin Futures Symbol on CME and Other Exchanges

The CME, or Chicago Mercantile Exchange, is where Bitcoin futures trading began on December 10, 2017. The CME's Bitcoin futures symbol is BTC.

The CME's decision to launch Bitcoin futures was a significant milestone in the cryptocurrency's history. It marked the first time a major exchange had offered futures contracts on a digital asset.

The CME's BTC futures contract has a monthly expiration cycle. This means that each contract will expire on the last business day of the month.

Recommended read: Grayscale Bitcoin Trust Btc News

Bitcoin futures allow an investor to gain exposure to Bitcoin without actually holding any Bitcoin. They enable the investor to predict or speculate on the future price of Bitcoin.

These contracts are traded on the Chicago Mercantile Exchange (CME) and cryptocurrency exchanges, similar to standard futures contracts. Margined futures for Bitcoin also trade on the Chicago Board Options Exchange (CBOE).

By using Bitcoin futures, an investor can bet on the future price of Bitcoin, giving them a way to participate in the cryptocurrency market without directly owning Bitcoin.

Explore further: Crypto Exchange Bankrupt

The first Bitcoin futures contracts were listed on the CBOE in early December 2017, but were discontinued.

The CME introduced Bitcoin futures contracts in December 2017, which are traded on the Globex electronic trading platform and are settled in cash.

The CME's Bitcoin futures contracts are based on the CME CF Bitcoin Reference Rate, and the exchange also has reference rates for many other cryptocurrencies.

CBOE doesn't have a Bitcoin Futures product anymore, but CME's futures contracts have taken off.

In January 2024, the CBOE announced that margined Bitcoin and Ether futures began trading, making it the "first U.S. regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform."

A different take: P2p Bitcoins

You can trade Bitcoin futures on several regulated and unregulated platforms, each with different features, fees, and regulatory environments. CME and Bakkt are more secure and regulated, while Binance and Bybit offer more leverage but operate in less regulated environments.

Regulated exchanges like CME and Bakkt operate under the oversight of governmental or financial regulatory bodies, ensuring transparency, security, and fair practices. This regulatory framework makes them attractive to institutional and cautious retail investors.

Some of the leading platforms for trading Bitcoin futures include CME, Bakkt, Binance, Bybit, and OKX. CME offers a range of futures contracts, including Bitcoin and ETH futures, with a contract unit of 5 bitcoin and a price quote of USD.

Regulated exchanges like CME and Bakkt require a 50% margin for Bitcoin futures trading, while Binance and Bybit require a 20% margin.

Worth a look: Moomoo Margin Rate

There are several exchanges where you can trade Bitcoin futures, but not all of them are created equal. Some of the most popular exchanges for cryptocurrency futures include Binance, ByBit, OKX, and XT.COM.

Binance, the world's biggest cryptocurrency exchange by trading volume, accounted for $60.30 billion of the total trading volume in Bitcoin futures. ByBit, on the other hand, ranks among the world's biggest cryptocurrency exchanges and has 469 cryptocurrency futures available.

Broaden your view: An Airdrop of New Cryptocurrency following a Hard Fork Is

OKX offers 178 cryptocurrency futures, and XT.COM has 472 crypto futures available. Trading volume on these exchanges can be significant, with ByBit's trading volume reaching $19.98 billion on October 10, 2024, and OKX's trading volume reaching $21.15 billion on the same day.

Here are some of the key features of these exchanges:

It's worth noting that not all of these exchanges are available to U.S. customers, and some of them operate in less regulated environments. If you're a U.S. investor, you may want to consider regulated exchanges like CME or Bakkt, which offer more security and oversight.

Suggestion: Bitcoin Lightning Exchanges

To trade Bitcoin Futures, you need to choose a platform that's regulated by the CFTC or a crypto-specific exchange. Some leading platforms include the CME for institutional traders, Unregulated Binance and Bybit, OKX, Kraken Futures for retail and crypto enthusiasts, and Bakkt for physically-settled Bitcoin Futures.

You'll need to sign up for an account on your chosen platform and complete identity verification, which may require additional documentation for regulated platforms like CME or Bakkt. The required capital to trade Bitcoin Futures varies depending on the platform, and you can fund your account with fiat currency or cryptocurrencies.

If this caught your attention, see: How to Trade Bitcoins

Bitcoin Futures are typically traded on margin, meaning you only need to deposit a fraction of the contract's total value, and most platforms offer leverage to control a larger position. Be aware that leverage magnifies both gains and losses.

Here are some key considerations to keep in mind:

The CME Group Micro Contracts at IBKR offer a more efficient and cost-effective way to trade Bitcoin futures.

These contracts are 1/10 the size of a standard Bitcoin futures contract, making them perfect for active traders who want to fine-tune their Bitcoin exposure.

The Micro Bitcoin futures (MBT) provide an efficient way to trade a smaller slice of Bitcoin, giving traders more choices for managing Bitcoin price risk.

One of the benefits of trading Micro Bitcoin futures is that they have the same features as the larger five-bitcoin contract, but at 1/50 of its contract size.

The contracts are settled to the regulated CME CF Bitcoin Reference Rate (BRR), providing transparent and reliable price discovery.

You might enjoy: Crypto Coin Price in India

Trading Micro Bitcoin futures also allows traders to precisely scale their Bitcoin exposure, adding more control over the amount of Bitcoin in their trading strategies.

The CME Group Micro Contracts at IBKR are a great option for traders who want to save on potential margin offsets and enjoy the efficiency of futures contracts.

Here are the contract specifications for Micro Bitcoin futures:

CME ClearPort: MBT

Clearing: MBT

IBKR: MBT Listing CycleSix consecutive monthly contracts inclusive of the nearest two December contracts.Final SettlementCash settled by reference to final settlement price, equal to the CME CF Bitcoin Reference Rate (BRR) on last day of trading.Termination of TradingTrading terminates at 4 p.m. London time on the last Friday of the contract month. If that day is not a business day in both the U.K. and the US, trading terminates on the preceding day that is a business day for both the U.K. and the U.S.

Curious to learn more? Check out: Does Pattern Day Trading Apply to Crypto

Bitcoin futures offer a range of benefits for traders and investors.

One of the main advantages is the ability to trade in a regulated environment, which can provide a level of security and confidence for institutional investors.

You can choose from a variety of venues to trade monthly cryptocurrency futures, including brokerages approved for futures and options trading and decentralized exchanges.

The main advantage of trading Bitcoin futures contracts is that they offer regulated exposure to cryptocurrencies, which can be especially useful in a volatile ecosystem with wild price swings.

Simplicity is another key benefit, as Bitcoin futures contracts don't require investors to create a Bitcoin wallet or put money into custody solutions for storage and security while trading.

Position limits differ between exchanges, with CME allowing a maximum of 8,000 front-month futures contracts for Bitcoin and micro Bitcoin.

Bitcoin futures contracts are relatively safer for dabbling in Bitcoin without getting burnt, as futures contracts have positions and price limits that enable you to curtail your risk exposure to the account.

A unique perspective: Futures Thinkorswim

Here are some potential benefits of trading Bitcoin futures:

Regulated exchanges like CME offer a measure of confidence and recourse to institutional investors, who compose the majority of traders in regulated contracts. This is because they are regulated by government agencies, such as the Commodity Futures Trading Commission (CFTC) in the U.S.

Regulated exchanges have stricter oversight, security standards, and investor protections, making them a more reliable option for traders who want to minimize risk. In contrast, unregulated exchanges often lack centralized oversight and may have higher leverage and more diverse trading options, but also increase the risk of market manipulation and limited recourse in case of disputes or security breaches.

Regulated exchanges like CME, Bakkt, and ErisX are attractive to institutional and cautious retail investors due to their regulatory framework, which enforces rules for transparency, security, and fair practices. Unregulated exchanges, on the other hand, are more suitable for traders who can tolerate higher volatility, leverage, and potential legal issues.

Regulated exchanges like CME have a base margin requirement for Bitcoin futures, while brokerages like TD Ameritrade can set margin rates on top of the base rate. This means that traders need to meet the base margin requirement set by the exchange, as well as any additional margin requirements set by their brokerage.

Trading crypto futures offers a regulated and safer way to invest in Bitcoin and other cryptocurrencies. This is because futures contracts are regulated by organizations like the Commodity Futures Trading Commission (CFTC) in the U.S.

One of the main benefits of trading crypto futures is that they simplify the process of investing in Bitcoin. You don't need to create a Bitcoin wallet or worry about storing and securing your assets.

Position limits, which vary between exchanges, also provide an added layer of protection for traders. For example, CME allows a maximum of 8,000 front-month futures contracts for bitcoin and micro bitcoin.

Trading crypto futures also offers leverage, allowing traders to control larger positions with a smaller initial capital investment. This can potentially lead to larger profits.

Futures contracts can be purchased via a regular brokerage account, making it easier for investors to get started.

Here are some key benefits of trading crypto futures:

Regulated exchanges offer a level of oversight and security that's hard to find in unregulated markets. For instance, the CME Group Bitcoin futures contract has a 50% margin requirement, meaning you'd need to place $25,000 in your margin account to purchase two contracts totaling 10 bitcoin.

Regulated exchanges like CME operate under the oversight of governmental or financial regulatory bodies, which enforce rules to ensure transparency, security, and fair practices. This framework makes them particularly attractive to institutional and cautious retail investors.

The CME uses the Bitcoin Reference Rate, a volume-weighted average price for Bitcoin sourced from multiple exchanges, to determine the contract's value. This rate is calculated daily between 3 p.m. and 4 p.m. London time.

To trade futures, you must have an account with a registered futures commission merchant or introducing broker. This adds an extra layer of security and accountability to the trading process.

Regulated exchanges like CME, Bakkt, and ErisX offer greater security, transparency, and legal protections, making them a more reliable option for traders who want to minimize risk.

You might like: Sentinelone Stock Symbol

Here's a comparison of regulated and unregulated exchanges:

Regulated exchanges like CME also offer a measure of confidence and recourse to institutional investors, who compose the majority of traders in such contracts. This is because the CME is regulated by the Commodity Futures Trading Commission (CFTC) in the U.S.