What is a CME bitcoin futures contract?

The CME introduced Bitcoin futures contracts in December 2017. The contracts are traded on the Globex electronic trading platform and are settled in cash. Bitcoin and Ether futures are based on the CME CF Bitcoin Reference Rate and the CME CF Ether Reference Rate. Consider the following example for a CME Group Bitcoin futures contract.

What is the margin requirement for bitcoin futures trading at CME?

The margin requirement for Bitcoin futures trading at CME is 50% of the contract amount, meaning you must deposit $25,000 in your margin account. You can finance the rest of the contract purchase by using leverage. The contract's value varies based on the underlying asset's price (i.e., Bitcoin).

How does CME calculate bitcoin?

CME uses the Bitcoin Reference Rate, which is the volume-weighted average price for Bitcoin sourced from multiple exchanges and 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.