CME Group has announced that it will launch Ethereum futures, called Ether Future, on February 8th, 2021.
Currently, the Chicago Mercantile Exchange (CME) already offers Bitcoin Future, the first BTC futures contract launched worldwide back in December 2017, which can be traded on a traditional exchange.
Given the success of this product, it was decided to also launch ETH futures, which will be cash-settled on the basis of the CME CF Ether-Dollar Reference Rate.
CME Group is the world’s largest and most diversified derivatives market, and allows trading in futures and options on all major asset classes based on interest rates, equity indices, foreign currencies, energy, agricultural products and metals.
Ethereum futures expand CME’s portfolio
Ether futures will join bitcoin futures and options. As the CME’s bitcoin futures approach their third anniversary tomorrow on December 17th, they have shown significant growth in their adoption by a wide range of participants, including institutional investors.
In 2020, an average of 8,560 contracts were traded each day, equivalent to approximately 42,800 BTC (equivalent to $880 million). Furthermore, institutional interest in these products continues to grow, with the number of large open interest holders reaching a record 110 in December.
CME Group Global Head of Equity Indices and Alternative Investment Products, Tim McCourt, said:
“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”.
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