Bitcoin fans just got a lower cost way to speculate on the world largest cryptocurrency with micro futures from CME Group Inc.

The world’s largest derivatives marketplace is expanding its suite of crypto offerings to include Micro Bitcoin futures as interest from individuals surges on forums such as Reddit with the token’s price near record highs. Other, less regulated, crypto exchanges offer Bitcoin futures.

"Smaller contracts will allow more people to participate and increase liquidity, ” said John Wu, president of 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 US$300,000 , while the micro futures will be about US$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.

"We’ve already had large buy-side customers reach out expressing enthusiasm, ” McCourt said in an interview Tuesday. "There are firms that have been on the sidelines figuring out how to get involved, ” and this product might appeal to them, he said, adding that "we’re expecting new entrants to the market across customer segments.”

CME expects the demand to come from around the globe, similar to the current contract where a significant portion of the activity comes from outside of the U.S. and outside American trading hours, McCourt said.

"People across the globe are looking for smaller contract sizes, ” he said.

CME Group first offered Bitcoin futures in 2017 and recently launched Ether futures. The new contracts will be introduced on May 3, pending regulatory review.

 - Bloomberg