CME Group to Offer Ethereum Options

CME Group to Offer Ethereum Options

Key Takeaways

CME Group will likely be providing choices on Ethereum futures contracts beginning September 12.
The change is already providing Bitcoin futures, micro-sized Bitcoin futures, and micro-sized Ethereum futures.
Micro-sized Ethereum futures have seen a development of 34% in open curiosity between the primary and second quarters of 2022.

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Ethereum choices are coming to the world’s largest derivatives market, CME Group.

Managing Ethereum Price Risk

Institutions preserve increasing the spectrum of crypto spinoff merchandise.

The world’s largest derivatives market, CME Group—which include the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and the Commodity Exchange— introduced in the present day will probably be providing choices on Ethereum futures beginning September 12.

The new Ethereum contracts, which will likely be 50 ETH every, will broaden on CME Group’s current crypto derivatives which embrace Micro Bitcoin choices and Micro Ethereum choices (sized at 10% of a BTC or ETH token, respectively). Bitcoin futures sized at 5 BTC per contract are additionally at the moment out there.

Previously-issued Ethereum choices contracts, the change acknowledged, have turn into well-liked merchandise that carry “consistent liquidity, volume, and open interest for clients.” The open curiosity in Micro Ethereum futures alone elevated by 34% between the 12 months’s first fiscal quarter and the second.

“As we approach the highly anticipated Ethereum Merge next month, we continue to see market participants turn to CME Group to manage Ethereum price risk,” mentioned CME Group Global Head of Equity and FX Products Tim McCourt. “Our new Ethereum options will offer a wide array of clients greater flexibility and added precision to manage their Ethereum exposure ahead of market moving events.”

Ethereum is about to transition from a Proof-of-Work consensus mechanism to Proof-of-Stake, a highly-anticipated occasion recognized within the crypto group because the “Merge.” Among different issues, the Merge is predicted to scale back ETH token emissions by 90% in addition to slash the community’s power consumption by 99%. The Merge was scheduled to occur on September 15 after Ethereum efficiently accomplished its last check run.

Disclosure: At the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.

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