CME will launch Ethereum futures in February

CME Group has announced that it will launch the Ethereum future, called the Ether Future, on February 8, 2021.

Currently, the Chicago Mercantile Exchange (CME) already offers the Bitcoin Future, the first futures contract on BTC to be launched in the world, in December 2017, which is tradable on a traditional exchange.

Given the success of this product, it was decided to also launch an ETH future, which will be cash-settled based on the CME CF Ether-Dollar Reference Rate.

CME Group is the world’s largest and most diversified derivatives marketplace, allowing trading of futures and options contracts on all major asset classes based on interest rates, equity indices, foreign currencies, energy, agricultural products and metals.

Ethereum futures expand CME’s offerings.

Ether futures will join bitcoin futures and options. As the CME’s bitcoin futures 1K daily Profit approach their third anniversary, which occurs tomorrow on 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 each day, equivalent to approximately 42,800 BTC (equivalent to $880 million). In addition, institutional interest in these products continues to grow, with the number of large open interest holders reaching a record 110 in December.

CME Group Global Head of Equity Indices and Alternative Investment Products, Tim McCourt, said:

„Based on growing 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 protect this growing cryptocurrency. Ethereum is the second largest cryptocurrency by both market capitalization and daily volume. The introduction of listed Ether futures to our regulated and proven CME Group derivatives market will help create a forward curve so that Ethereum market participants can better manage price risk.“