The world’s leading financial derivatives platform – the Chicago Mercantile Exchange (CME) Group – announced its intention to Bitcoin– and Ethereumfutures tide to be introduced into the euro later in August
The company already has a long history in the crypto industry. A few months ago, it introduced micro-options on Bitcoin and Ethereum futures, justifying its move with investors’ increasing appetite for such services.
CME dives deeper
Despite the grim state of the cryptocurrency market, the America-based company redoubled its digital asset efforts. It announced the launch of euro-denominated bitcoin and ethereum futures, which will be available to clients by the end of the month.
CME explained that these contracts will be sized at five BTC and 50 ETH per contract. The new features will be settled in cash based on the CME CF Bitcoin Euro benchmark rate and the CME CF Ethereum Euro benchmark rate. The company assured that they would be subject to the rules already drawn up.
Tim McCourt – Global Head of Equity and FX Products at CME Group – argued that the current status of the crypto sector is increasing client interest in such products:
“The continuing uncertainty in the markets for cryptocurrencies as well as the robust growth and high liquidity of our existing Bitcoin and Ethereum futures result in increased demand for risk management solutions from institutional investors outside of the US
Our Bitcoin Euro and Ethereum Euro Futures contracts will provide clients with more precise tools to trade and hedge exposure to the two major cryptocurrencies market capitalization to hand.”
The manager added that euro-denominated digital assets are the second-highest traded fiat currency after the US dollar.
“Year-to-date, EMEA represents 28% of all Bitcoin and Ethereum futures contracts traded, up more than 5% from 2021,” he noted.
The derivatives marketplace giant allows users to trade the futures, options, cash and OTC markets. It also allows for a wide range of products across major asset classes, including crypto. Q2 2022 was an extremely successful period for CME Group as Ethereum futures reached a record volume averaging 6.6k contracts per day (up 27% from Q1).
The previous crypto steps
CME Group jumped on the digital asset bandwagon in 2017 by releasing Bitcoin futures contracts. March 2022 CME started Micro options on Bitcoin and Ethereum futures. At the time, Tim McCourt said:
“The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our micro-bitcoin and micro-ethereum futures. These contracts will offer a wide range of market participants – from institutions to experienced, active retail traders – more flexibility and precision to manage their exposure to the two largest cryptocurrencies by market cap.”
Futures contracts allow investors to get into digital currencies without buying them and worrying about storing their holdings. The products require consumers to sell them by a specific date.
Source: Crypto News Deutsch