Crypto News

CME Group to Release Euro-Backed BTC and ETH Futures

The world’s main monetary derivatives platform – Chicago Mercantile Exchange (CME) Group – revealed intentions to introduce Bitcoin and Ether Futures tide to the euro later in August

The company already has a deep historical past with the crypto business. Just a few months in the past, it launched micro choices on Bitcoin and Ether futures, justifying its transfer with the surging investor urge for food for such providers.

CME Dives Deeper

Despite the grim situation of the cryptocurrency market, the American-based agency doubled down on its digital asset endeavors. It announced the introduction of euro-denominated Bitcoin and Ether futures that may develop into obtainable for patrons on the finish of the month.

CME defined that these contracts will probably be sized at 5 BTC and 50 ETH per contract. The new options will probably be cash-settled, primarily based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate. The entity assured they are going to be topic to the already constructed guidelines.

Tim McCourt – Global Head of Equity and FX Products at CME Group – argued that the present standing of the crypto sector will increase the shoppers’ curiosity in such merchandise:

“Ongoing uncertainty in cryptocurrency markets, together with the strong development and deep liquidity of our present Bitcoin and Ether futures, is creating an elevated demand for threat administration options by institutional traders outdoors the U.S.

Our Bitcoin Euro and Ether Euro futures contracts will present shoppers with extra exact instruments to commerce and hedge publicity to the 2 largest cryptocurrencies by market cap.”

The exec added that euro-denominated digital belongings rank because the second-highest traded fiat behind the American greenback.

“Year-to-date, the EMEA region represents 28% of total Bitcoin and Ether futures contracts traded, up more than 5% versus 2021,” he famous.

The derivatives market big permits customers to commerce futures, choices, money, and OTC markets. It additionally allows a variety of merchandise throughout main asset courses, together with crypto. Q2 2022 was a extremely profitable interval for CME Group since Ether futures reached a document common day by day quantity of 6.6K contracts (27% greater than in Q1).

The Previous Crypto Steps

CME Group hopped on the digital asset bandwagon in 2017 by releasing Bitcoin futures contracts. In March 2022, CME launched micro choices on Bitcoin and Ether futures. Back then, Tim McCourt commented:

“The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures. These contracts will offer a wide range of market participants – from institutions to sophisticated, active, individual traders – greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization.”

Futures contracts allow traders to achieve publicity to digital currencies with out buying them and worrying about storing their holdings. The merchandise require shoppers to promote them on a selected date.

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