On December 16, the Chicago Mercantile Exchange (CME) announced that CME Group is expanding the company’s crypto derivatives and plans to launch Ethereum futures. The company said the launch is based on increasing customer demand and plans to launch the new ether derivatives products on February 8, 2021.
While bitcoin (BTC) has hit a new all-time high, ethereum’s second largest crypto market (ETH) has also gained a lot of momentum. On Wednesday December 16, 2020, ether prices soared to $ 625 per unit and reached a market valuation of approximately $ 71 billion. Meanwhile, on the same day, CME Group announced the launch of a cash-settled futures market for ethereum.
“The new contract will be settled in cash, based on the CME CF Ether-Dollar Reference Rate, which serves as a one-time reference rate of the US dollar ether price,” the company’s press release said Wednesday. “Ether futures are listed on and subject to CME rules.”
CME Group announced the new ether futures as CME Bitcoin futures products will celebrate their third anniversary on December 17th. “Based on increasing customer 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, Said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.
McCourt further added:
Ethereum is the second largest cryptocurrency in terms of market cap and daily volume. The introduction of publicly traded ether futures to our proven, regulated CME Group derivatives marketplace will help create a forward curve so that ether market participants can better manage price risk.
Of course, the launch of the ether futures on February 8, 2021 by CME Group awaits approval from the US financial regulators. Ethereum advocate Ryan Sean Adams was delighted to hear the news and tweeted about it to his 38,000 Twitter followers.
“ETH futures on the CME, ”Adams said. “[The] lock gates are open. The largest derivatives exchange in the world has just been announced ETH futures on February 8. The largest institutions in the world will have a regulated way to buy ETH just in time for the bull run. The following is an all-time high. Then we’ll beat 10k, ”Adams added.
People new to the crypto space will not remember the previous bull market started when the CME announced a Bitcoin futures product, ” explained another ETH supporter Tyler Smith. Today the CME just announced an ethereum futures product. What do you think will happen? Smith asked his Twitter followers.
What do you think about CME Group announcing ethereum futures? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services, or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.