CME Group, a world-leading diversified derivatives market, announced today that it intends to launch the future of Ether starting February 8, 2021, pending a regulatory review.
The new contract will be settled in cash, based on the CME CF Ether-Dollar Reference Rate, which acts as a once-daily reference rate of US Ether price. The future of Ether will be listed on and subject to CME rules.
“Based on growing client demand and solid growth in our futures markets and Bitcoin options, we believe that adding Ether futures will provide our clients with a valuable tool to trade and hedge this growing cryptocurrency. Ethereum is the second-largest cryptocurrency by market capitalization and daily volume. The introduction of a listed Ether future into our time-tested regulated CME Group derivatives market will help create a forward curve so that Ethereum market participants can better manage price risk. ”
– Tim McCourt, Head of CME Group’s Global Equity and Alternative Investment Products Index
The future of Ether will join the Bitcoin CME Group futures and options. As the future of Bitcoin’s CME approaches their third anniversary on December 17, there has been significant growth in their adoption by a wide variety of participants, including institutional investors.
In 2020 so far, 8,560 Bitcoin CME futures contracts (equivalent to about 42,800 bitcoin) have traded on average every day. At the same time, institutional interest continues to build with the number of large open interest holders reaching a record 110 in December.