CME Group Launches ETH Futures On February 8

Ethereum has been making headlines lately due to the significant number of achievements that the project has been able to mark.

The project made it to the spotlight once again following the latest important move that the platform just made. They teamed up with Ethereum Foundation in order to bring value and independence of the blockchain tech to over 50 million daily Redditers.

CME Group launches ETH futures

Now, according to the latest reports from an official press release, CME Group, which is the world’s leading derivatives marketplace, revealed that they are planning to launch Ethereum futures on February 8, following the regulatory review.

CME Group is allowing clients to trade futures, options, cash, and OTC markets. Besides this, it also allows the optimization of portfolios and analyzing data. This basically empowers market participants from all over the world to manage risk and take advantage of the best opportunities.

It’s been also reported that the new contract will be cash-settled and based on the CME CF Ether-Dollar Reference Rate – it’s important to note that this serves as a once-a-day reference rate of the U.S. dollar price of Ethereum.

Another thing worth mentioning is the fact that ETH futures will be listed on and subject to the rules of CME.

“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,” according to Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.

He continued and explained that “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.”

ETH futures joins CME Group’s Bitcoin futures and options

ETH futures comes along with CME Group’s Bitcoin futures and options. It’s important to note the fact that there’s been a massive wave of adoption regarding the CME Bitcoin futures, and we’re also talking about institutional investors.

According to the official press release, there are 8,560 CME Bitcoin futures contracts (meaning about 42,800 BTC) that have traded on average each day so far, and institutional interest is on the rise as well.

Institutional players are a key ingredient for the mainstream adoption of crypto and the underlying technology – the blockchain.

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I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.