CME, the world leading derivate marketplace, announced that after the high demand of Bitcoin futures trading on CME, The exchange will add Ethereum futures.
Bidding for the new product will start on February 8, 2021. The calculation will be based on ETH/USD exchange rate.
CME said that the addition of contracts for Ethereum is dictated by demand and the Bitcoin futures market’s steady growth.
In 2018, Tim McCord, managing director of the CME, announced plans to test the possibility of launching futures products on Ethereum.
In November 2020, the volume of open positions (OI) on Bitcoin futures on the CME came close to $1 billion. Such an interest in Bitcoin futures has motivated CME to launch futures trading on the world’s second top cryptocurrency Ethereum.
“Based on the growing customer demand and the steady growth of our bitcoin futures and options markets, we believe that the addition of ether futures will provide our clients with a valuable tool for trading and hedging this growing cryptocurrency,”
Said Tim McCourt, Global Head of Stock Indices and Alternative Investment Products at CME Group. He also Added
“Ethereum is the second-largest cryptocurrency in terms of market capitalization and daily volume. Introducing these other features to our time-tested, regulated CME Group derivatives market will help create a forward curve so that Ethereum market participants can better manage price risk.”