The CME Group, one of the world’s largest derivatives exchanges, is launching Bitcoin and Ethereum futures contracts in Euros.

The Bitcoin contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR). While the Ethereum contract will be physically settled and based on the Gemini auction price for ETH-USD.

  • According to the CME, there is an increasing demand for non-USD-denominated crypto derivatives products.
  • The company also plans to introduce options for Ethereum futures on 12 September.

The derivatives marketplace CME Group has announced that its Euro-denominated Bitcoin (BTC) and Ether (ETH) futures contracts are now functioning.

On Monday, August 29, 2022, the firm formally unveiled two euro-denominated crypto futures contracts, stating that they would be listed on and governed by CME.

Futures contracts for Bitcoin Euro and Ether Euro

As was revealed a few weeks ago, the Bitcoin Euro will be worth 5 BTC and the Ether contract at 50 ether. The contracts will be settled with cash, and they’ll be based on the CME CF Bitcoin-Euro Reference Rate. As well as the CME CF Ether-Euro Reference Rate.

“Our new Bitcoin Euro and Ether Euro futures will give corporate traders, both within and outside the United States, with more precise and regulated instruments to trade and hedge their exposure to the two most valuable cryptocurrencies by market capitalization,” says Tim McCourt, the Global Head of Equity and FX Products at CME Group.

After pointing out that the two contracts follow a strong performance in growth and liquidity for bitcoin and ether. He states that they are both US dollar-denominated.

The CME Group launches these futures contracts as the cryptocurrency market enters a period of sluggish growth. The clamour for properly regulated non-USD crypto derivatives, on the other hand, has not decreased.

In the last few months, we have seen several Bitcoin and Ethereum futures products launching or being announced. These include Bakkt’s Bitcoin Futures, ICE’s Bitcoin Futures, LedgerX’s Bitcoin and Ethereum Futures, and CBOE’s Bitcoin Futures.

The CME Group’s Bitcoin Futures contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR). The BRR aggregates bitcoin trading activity across major bitcoin spot exchanges between 3:00 p.m. and 4:00 p.m. London time.

An options contract on Ether (ETH) futures is also planned by the firm. On September 12, a 50 ether options contract will be released, pending regulatory approval. The options will be cash-settled and based on the CME CF Ether-Dollar Reference Rate (EDR).

The move comes as the cryptocurrency derivatives market is rapidly evolving. Bitcoin futures were first launched by CBOE in December last year, with CME following suit in mid-January. Nasdaq is also planning to launch its bitcoin futures contract in the first half of next year.

The growing interest in crypto derivatives is also reflected in the rising trading volumes being seen. For instance, CME’s Bitcoin Futures saw a record day of trading on 26 June, with over 18,000 contracts changing hands. This equated to around $315 million worth of bitcoin traded.

With institutional investors starting to get involved in the market. We will likely see even more interest in Bitcoin and Ethereum derivatives in the months and years ahead.

About CME Group

The CME Group is the world’s most significant and diversified derivatives market. They provide the broadest selection of global benchmark instruments in all major asset classes. Including foreign exchange, futures and options based on interest rates, stock indexes, energy commodities, and metals.

The company is headquartered in Chicago, with offices in New York, London, Singapore and Tokyo.

Bitcoin derivatives trading on CME Group’s platform saw a new all-time high on Monday, June 26th. This comes as Bitcoin’s price surged to over $9,000 per coin, following a strong weekend of trading.

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James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.