CME Group Announces The Listing of An Ethereum Futures Product Next Year
The world’s largest financial derivatives exchange Chicago Mercantile Exchange (CME) Group is going to introduce a new product on its trading platform in the form of an Ethereum futures contract. As announced officially by CME Group on Wednesday, the firm has said that it will launch an Ethereum futures product at the beginning of the next year. Following this announcement, the price value of the world’s second-ranked digital currency surged high exponentially.
Cash-settled Futures Contract
Based on the CME CF Ether-Dollar Reference Rate of the company, the new Ether (ETH) futures contract product will be cash-settled and will be launched on the 8th of February in 2021. While unveiling more details about this product, the firm said in the announcement that 50 units of ETH will be available in each contract. And the traders will be allowed to trade the derivative product from Sunday to Friday between 5 PM and 4 PM.
The launch of the product is currently subject to regulatory approval. As soon as the product gets regulatory approval, it will be ready to be launched in Feb next year.
With the listing of the Ether futures contract, CME Group is expanding its cryptocurrency derivatives offering to its institutional investors. Bitcoin futures product is already accessible to institutional investors on the trading platform of CME Group. Reportedly, the product of Bitcoin Futures launched three years ago when it went live on the 17th of December. Now, it has almost approached its third anniversary. On average each day, the platform CME has witnessed the trading of around 8,560 CME Bitcoin futures contracts so far now, as per the data shared by the firm in its announcement post.
While sharing his view regarding the introduction of this product, the Global Head of Equity Index and Alternative Investment Products at CME Group Tim McCourt said, “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.”
Following Bitcoin futures, the addition of Ether futures shows that the demand from institutional investors for these top two cryptocurrencies of the world by market value is increasing potentially.
Ether’s Price Value Breaks Above $600
On this announcement, the price value of the second-ranked cryptocurrency shot up and broke above the key resistance level of $600. Another factor that could have driven this upsurge of Ether’s price above $600 is the breakout of $20k achieved by Bitcoin the world’s largest digital currency by market value.
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