The planned kick-off for these futures contracts is anticipated for July 31, contingent on regulatory approval.
CME Group, based in Chicago, recently unveiled its strategy to introduce futures contracts focused on the Ether-to-Bitcoin ratio on June 29. The initiation of these futures contracts is scheduled for July 31, pending regulatory scrutiny.
Per the announcement, the Ether-to-Bitcoin Ratio futures will be cash-settled, utilizing the final settlement price of CME Group’s Ether (priced at $1,851) futures divided by the final settlement price of their Bitcoin (valued at $30,474) futures. In addition, this fresh contract will abide by the same listing cycle currently followed in CME Group’s Bitcoin and Ether futures contracts.
Giovanni Vicioso, the global head of cryptocurrency products at CME Group, underscored the potential for exploiting relative value trading opportunities between Ether and Bitcoin. Vicioso pointed out that while the two assets have traditionally exhibited a strong correlation, the market dynamics may now diverge, paving the way for profits based on their varying performances. He further elaborated:
“By introducing Ether-to-Bitcoin Ratio futures, investors gain the ability to manage ether and bitcoin exposure within a single transaction, eliminating the need for a directional perspective. This innovative contract will offer opportunities for a diverse client base seeking to hedge positions or execute distinctive trading strategies, all in a proficient, cost-effective manner.”
CME Group made its maiden voyage into the crypto market with the introduction of its inaugural Bitcoin futures contract back in December 2017. It followed this with the introduction of an Ether futures contract in February 2021. In response to the escalating demand for cryptocurrency investment options, CME Group broadened its offerings in 2022, adding micro BTC and ETH futures contracts, thus providing traders with an extended range of avenues to engage with these digital currencies.
On April 17, CME Group publicized its intentions to widen its crypto-related options by introducing fresh options for standard and micro-sized Bitcoin and Ether contracts. These innovative contracts were expected to roll out from May 22, subject to regulatory assessment.
This enhancement, which included daily expirations from Monday through Friday, offered traders enhanced management of short-term price risks. The goal behind this move was to equip market participants with greater precision and flexibility in managing short-term price fluctuations of Bitcoin and Ether amidst the turbulent volatility characteristic of the digital asset sphere.