CME Group Plans To Launch Euro-denominated Bitcoin And Ether Futures

Main derivatives market Chicago Mercantile Change Group goals to launch buying and merchandising for Bitcoin euro and Ether euro futures contracts beginning on Aug. 29.

In a Thursday announcement, CME Group explicit that topic to regulative assessment, it plans to launch contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures that shall be threepenny at 5 BTC and 50 ETH per contract. Each contracts shall be listed on CME, cash-settled, and based mostly on the CME CF Bitcoin-Euro Reference Price and CME CF Ether-Euro Reference Price.

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CME Group Plans To Launch Euro-denominated Bitcoin And Ether Futures

“Ongoing uncertainty in cryptocurrency markets, together with the sturdy development and deep liquidity of our current Bitcoin and Ether futures, is creating elevated demand for threat administration options by institutional buyers exterior the U.S.,” explicit CME Group international head of fairness and FX merchandise Tim McCourt. “Euro-denominated cryptocurrencies are the second highest listed fiat behind the U.S. Federal Reserve not.”

In keeping with McCourt, international locations in Europe, the Center East and Africa pictured 28% of all buying and merchandising for BTC and ETH futures contracts. The itemizing announcement additionally adopted the euro reaching parity with the U.S. Federal Reserve not in July for the primary time in 20 years — on the time of publication, 1 euro is price roughly $1.02.

CME Group launched the primary BTC futures contract — denominated in U.S. {dollars} — in December 2021, adopted by an ETH futures contract in February 2021. In March, the derivatives trade enlarged its providing of crypto funding automobiles to incorporate small BTC and ETH futures.

Cointelegraph reported in July that CME Group’s BTC and ETH derivatives contracts detected file exercise inside the second quarter of 2022, with 10,700 and 6,100 contracts listed, respectively. The trade additionally reported its small BTC and ETH merchandise had a mean every day amount of 17,400 and 21,300 contracts, respectively, in Q2 2022. A lot of the buying and merchandising exercise got here amid excessive volatility inside the crypto market, with the costs of each BTC and ETH descending in Could and June.