On June 29, the Chicago Mercantile Exchange (CME) Group announced its plans to launch Ether/Bitcoin ratio futures. The launch of these futures contracts is scheduled for July 31, pending regulatory review.
According to the announcement, settlement of the Ether/Bitcoin Ratio futures will be cash based on the final settlement price of CME Group’s Ether (ETH) futures divided by the final settlement price of CME Group’s Bitcoin (BTC) futures. Additionally, this new contract will follow the identical quotation cycle observed in CME Group’s bitcoin futures and ether futures contracts.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, highlighted the potential for relative value trading opportunities between ether and bitcoin. Vicioso emphasized that while these two assets have historically shown high correlation, their market dynamics can now vary, making it possible to capitalize on their performance differences. He added:
“With the addition of Ether/Bitcoin Ratio Futures, investors will be able to acquire Ether and Bitcoin exposure in a single trade without having to take a directional view. This new contract will help create opportunities for a wide range of clients wishing to hedge positions or implement other trading strategies, all in an efficient and cost-effective manner.”
CME Group made its first foray into the cryptocurrency market with the launch of the first bitcoin futures contract in December 2017. This was followed in February 2021 with the launch of an ether futures contract. Recognizing the growing demand for cryptocurrency investment opportunities, CME Group continued to expand its offerings in 2022 by launching micro-BTC and ETH futures contracts, giving traders additional opportunities to gain exposure to these digital assets.
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On April 17, CME Group announced plans to expand its cryptocurrency options by introducing new standard and micro Bitcoin and Ether contract options. These new contracts should be available starting May 22nd, pending regulatory review.
The extension included daily maturities from Monday to Friday, allowing traders to better manage short-term price risks. This move aimed to offer market participants greater precision and flexibility in managing the short-term price risks of Bitcoin and Ether in the face of heightened volatility in the digital asset space.
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