The Chicago Mercantile Exchange (CME) Group revealed its intention to launch Ether/Bitcoin Ratio futures on June 29.
The introduction of these futures contracts is scheduled for July 31, pending regulatory approval.
The settlement of Ether/Bitcoin Ratio futures will be in cash, determined by the final settlement price of CME Group’s Ether (ETH) futures divided by the final settlement price of CME Group’s Bitcoin (BTC) futures.
Additionally, this new contract will follow the same listing cycle as CME Group’s Bitcoin and Ether futures contracts.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, highlighted the potential for relative value trading opportunities between Ether and Bitcoin.
While these assets have traditionally exhibited a strong correlation, their market dynamics may now differ, enabling investors to capitalize on their performance variances. Vicioso stated:
“By introducing Ether/Bitcoin Ratio futures, investors can gain exposure to both ether and bitcoin in a single trade without taking a directional view.
This new contract will facilitate opportunities for a wide range of clients seeking to hedge positions or execute various trading strategies, all in an efficient and cost-effective manner.”
CME Group initially entered the cryptocurrency market in December 2017 by launching the first Bitcoin futures contract.
In February 2021, they expanded their offerings by introducing an Ether futures contract. Recognizing the growing demand for cryptocurrency investment opportunities, CME Group further broadened its product range in 2022 with the introduction of micro BTC and ETH futures contracts, providing traders with additional options to engage in these digital assets.
On April 17, CME Group unveiled plans to enhance its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts.
These contracts were expected to be available from May 22, pending regulatory review.
This expansion included daily expiries from Monday to Friday, allowing traders to better manage short-term price risks associated with Bitcoin and Ether.
The aim was to provide market participants with increased precision and flexibility in managing the short-term price volatility of these digital assets.
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