Chicago Mercantile Exchange group Begins BTC, ETH Futures Contract
On August 29, the Derivatives marketplace Chicago Mercantile Exchange Group officially announced the launching of two euro-denominated Bitcoin (BTC) and Ether (ETH) futures contracts, sized at 5 BTC and 50 ETH per contract.
In the press release, CME Group noted that both BTC & ETH contracts will be listed on CME, cash-settled, and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively.
"Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market Group global cap,” said Tim McCourt, the Global Head of Equity and FX Products at CME Group.
He highlighted that the offering of the two contracts comes after a strong showing, both with regards to general development and liquidity, for the major derivatives’ US dollar-denominated bitcoin and ether contracts.
On Monday CME Group also tweeted, “Now live: euro-denominated Bitcoin and Ether futures. Efficiently manage bitcoin and ether exposure in the underlying currency of your choice.”
As announced on Aug. 4, the euro-denominated ETH futures represent investment vehicles launched preceding the Merge where the Ethereum blockchain transitions to proof-of-stake — probably between Sept. 10 and 20. 28% of all trading for BTC and ETH futures contracts are represented by European countries as well as the Middle East and African countries.
CME Group is revealing these futures products as the crypto market navigates a crypto winter that has reduced crypto prices. However, appropriately regulated non-USD crypto derivatives’ demand stays high.
CBW - External Analyst