The world’s largest financial derivatives exchange, CME Group, is planning to launch futures for Ether (ETH) next year. The first cryptocurrency they have listed was Bitcoin (BTC) in late 2017, Ether will be the second one due to increasing client demand, according to CME.
CME Group, the world’s leading derivatives marketplace, announced that it intends to launch Ether (ETH) futures starting February 8, 2021, pending regulatory review. The new contract will be cash-settled, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. Ether futures will be listed on and subject to the rules of CME.
Increasing demand for cryptocurrencies
Ether (ETH) futures will join CME Group’s Bitcoin (BTC) futures and options. As CME Bitcoin futures approach their third anniversary on Dec. 17, there has been significant growth in their adoption from a broad array of participants, including institutional investors. In 2020-to-date, 8,560 CME Bitcoin futures contracts (equivalent to about 42,800 bitcoin) have traded on average each day. At the same time, institutional interest continues to build with the number of large open interest holders reaching a record of 110 in December.
“Based on increasing client demand and robust growth in our Bitcoin futures and options markets, we believe the addition of Ether futures will provide our clients with a valuable tool to trade and hedge this growing cryptocurrency. Ethereum is the second-largest cryptocurrency by both market capitalization and daily volume. The introduction of listed Ether futures to our time-tested, regulated CME Group derivatives marketplace will help to create a forward curve so Ethereum market participants can better manage price risk.” – Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.
About CME Group
With $4.87 billion in revenues CME Group is the world’s leading derivatives marketplace and enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. Their exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.