CME Group, the world’s leading derivatives market, announced plans to launch Ether/Bitcoin ratio futures on July 31.
“Historically, ether and bitcoin have been highly correlated; However, as the two assets have grown over time, market dynamics may impact the performance of one more than the other, creating opportunities for relative value trading,” said Giovanni Vicioso, CME’s Global Head of Cryptocurrency Products group. “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.”
The Ether/Bitcoin Ratio Futures will be cash settled at the value of the final settlement price of the CME Group Ether Futures divided by the corresponding final settlement price of the CME Group Bitcoin Futures. The new contract follows the same listing cycle as CME Group’s bitcoin futures and ether futures contracts.
“The launch of CME Group’s Ether/Bitcoin Ratio Futures broadens the market for institutions and sophisticated investors seeking exposure to digital assets in a regulated environment,” said Jason Urban, Global Head of Trading at Galaxy. “We are excited to support this product, which will appeal to investors looking to benefit from the shifts between the two largest digital assets by market cap. We commend CME Group’s continued commitment to developing innovative offerings that are essential to building an enduring ecosystem for this asset class.”
“The launch of Ether/Bitcoin ratio futures completes the currency triangle and enables market makers like BTC to cross,” said Paul Eisma, head of options trading at XBTO. “CME Group’s innovative, regulated product will help increase volume, reduce spreads and give institutional crypto market participants a vehicle to express the relative value between BTC and ETH.”
“This new ETH/BTC cryptocurrency contract from CME Group should offer investors more flexibility when hedging positions in non-dollar offshore markets,” said Brooks Dudley of Marex Capital Markets, Inc. “This represents another important advancement for the CFTC-regulated cryptocurrency. Derivatives.
For more information on cryptocurrency options, visit: www.cmegroup.com/ebr.
Source: CME
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