CME Group to Launch Futures Contract for ETH to BTC Ratio

The Chicago Mercantile Exchange (CME) Group has revealed its intention to introduce futures contracts for the Ether/Bitcoin ratio. The launch of these contracts is scheduled for July 31, pending regulatory approval.

The Ether/Bitcoin Ratio futures will be settled in cash, based on the final settlement price of CME Group’s Ether futures divided by the final settlement price of CME Group’s Bitcoin futures. The listing cycle for these contracts will follow the same pattern as CME Group’s existing Bitcoin futures and Ether futures contracts.

Giovanni Vicioso, the global head of cryptocurrency products at CME Group, highlighted the potential trading opportunities between Ether and Bitcoin. While these assets have historically exhibited a high correlation, their market dynamics may now differ, enabling traders to capitalize on performance variations. Vicioso stated that the new futures contract allows investors to gain exposure to both Ether and Bitcoin in a single trade, without needing to take a directional view. This will provide clients with more options for hedging positions or executing trading strategies efficiently and cost-effectively.

CME Group initially entered the cryptocurrency market by introducing the first Bitcoin futures contract in December 2017. They later added an Ether futures contract in February 2021. Recognizing the increasing demand for cryptocurrency investment opportunities, CME Group expanded its offerings in 2022 with micro Bitcoin and Ether futures contracts, providing traders with more flexibility to engage with these digital assets.

In April 2023, CME Group announced plans to expand its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts, including daily expiries from Monday to Friday. This move aimed to assist traders in managing short-term price risks associated with Bitcoin and Ether amid heightened volatility in the digital asset sector. The introduction of Ether/Bitcoin Ratio futures further demonstrates CME Group’s commitment to meeting the evolving needs of market participants in the cryptocurrency space.

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