CME Group has announced that it will launch Ethereum futures, called Ether Future, on February 8, 2021.
Currently, the Chicago Mercantile Exchange (CME) already offers Bitcoin Future, the first BTC futures contract launched worldwide in December 2017, which can be traded on a traditional market.
Given the success of this product, it was decided to also launch ETH futures, which will be settled in cash based on the CME CF Ether-Dollar benchmark rate.
CME Group is the world's largest and most diversified derivatives market, enabling futures and options to be traded on all major asset classes based on interest rates, equity indices, currencies, energy, agricultural products, and metals.
Ethereum futures expand CME's portfolio
Ether futures will join bitcoin futures and options. As CME bitcoin futures approach their third anniversary tomorrow, December 17, 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 per day, equivalent to approximately 42,800 BTC (equivalent to $ 880 million). In addition, institutional interest in these products continues to grow and the number of large open shareholders reached a record 110 in December.
CME Group's Global Head of Equity Indices and Alternative Investment Products, Tim McCourt, said:
“Based on growing customer demand and strong growth in our Bitcoin futures and options markets, we believe that 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 publicly traded Ether futures on our time-tested and regulated CME Group derivatives market will help create a forward curve for Ethereum market participants to better manage price risk. "