CHICAGO, August 4, 2022 /PRNewswire/ — CME Group, the world’s leading derivatives market, today announced plans to expand its cryptocurrency derivatives offering with the introduction of Bitcoin Euro and Ether Euro futures on August 29pending regulatory review.
Designed to match their US dollar-denominated counterparts, Bitcoin Euro and Ether Euro futures will be sized at five bitcoins and 50 ethers per contract. These new contracts will be settled in cash, based on the CME CF Bitcoin-Euro benchmark rate and the CME CF Ether-Euro benchmark rate, which serve as the daily benchmark rates for the price expressed in euros for bitcoin and ether. . These new futures will be listed and subject to CME rules.
“The continuing uncertainty in the cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures contracts, is creating a backlog of demand for risk management solutions from institutional investors outside of Our Bitcoin Euro and Ether Euro futures contracts will provide clients with more accurate tools to power and hedge exposure to the two largest cryptocurrencies by market capitalization,” said Tim McCourt, Global Head of Equity and Currency Products, CME Group. “Euro-denominated cryptocurrencies are the second most traded fiat behind the US dollar. Year-to-date, EMEA accounts for 28% of total Bitcoin and Ether futures contracts traded, up more than 5% from 2021.”
“The launch of CME Group’s euro-denominated Bitcoin and Ether futures could help meet the growing demand for regulated and robust, non-USD crypto derivatives,” said Edmond Goh, head of trading at B2C2. “As the first OTC counterparty, we look forward to continuing to provide liquid markets in this important asset class.”
“TP ICAP is delighted to support another market-defined crypto-asset product from CME Group. Our digital assets business has been operational and trading CME Group crypto-assets since early 2020, originally in Londonfollowed by expansion into the United States in 2021 and, more recently, into Asia-Pacific via hong kong and Singaporeone says Sam Newman, head of digital asset brokerage at TP ICAP. “Interest in crypto-assets has seen tremendous growth, and these new euro-denominated futures contracts will help further expand the accessibility and utility of crypto-asset derivatives, especially within Europe.”
CME Group’s suite of Cryptocurrency products continues to provide consistent liquidity, volume and open interest to clients looking to hedge their risk or gain exposure to the asset class. The second quarter was a record quarter in terms of average daily open interest (106.2K contracts) and was the second highest quarter ever in terms of average daily volume (57.4,000 contracts) for all cryptocurrency products. Additionally, Ether futures reached a record average daily volume of 6.6K contracts in Q2, up more than 27% compared to Q1.
For more information on this product, please visit https://www.cmegroup.com/cryptocurrencies#explore-our-cryptocurrency-products.
As the world’s leading derivatives market, CME Group (www.cmegroup.com) enables its clients to trade futures, options, cash and over-the-counter markets, optimize portfolios and analyze data, which enables market players around the world to effectively manage risks and seize opportunities. CME Group exchanges offer a wide range of global benchmark products in all major asset classes based on interest rates, equity indices, currencies, energy, agricultural commodities and metals. The company offers futures and futures options through the CME Globex® platform, fixed income through BrokerTec, and foreign exchange trading through the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing.
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SOURCE CME Group