Chicago-based derivatives trading giant CME Group has announced the launch of Ethereum options.
According to Tim McCourt, global head of equity and FX products, the new product was launched due to rapidly growing interest in Ethereum options.
Ethereum options will make it possible for traders to manage their exposure ahead of the upcoming Merge event, which is widely expected to bring more volatility to the market.
In February, CME Group launched Ethereum futures, kicking the bull market into a higher gear.
McCourt has noted that Ethereum futures have managed to record a 43% year-over-year increase in trading volume.
Leon Marshall, global head of sales at global cryptocurrency trading firm Genesis, says that Ether options will be a great hedging tool for traders who will have to consider various price risks ahead of the high-stakes Merge event.
The Chicago-based derivatives marketplace announced the launch of Ether options back in September.
As reported by U.Today, CME also launched euro-denominated Ether and Bitcoin futures in late August to meet greater institutional demand.
In January 2020, CME Group launched Bitcoin options.
The derivatives giant dived into the cryptocurrency market back in late December 2017.
Fast forward to September, and CME Group surpassed crypto-native exchanges in terms of Bitcoin futures trading volume.
Last year, CME also launched micro versions of Bitcoin and Ethereum futures.
The world's first futures exchange, which was established all the way back in 1848, offers a wide range of derivatives, including water futures contracts that were launched in late 2020.