CME Group, a dominant player in the global derivatives marketplace, is preparing to introduce Ether/Bitcoin Ratio futures on July 31, subject to regulatory clearance. This novel type of contract will enable individuals to invest simultaneously in bitcoin and ether, thereby streamlining the investment process.
A futures contract, for those who may not know, is an agreement to buy or sell a particular asset at a predetermined price at a specific time in the future. It's essentially a bet on the future price of an asset. Traders can either go long, predicting the price will rise, or go short, predicting the price will fall.
The Ether/Bitcoin Ratio futures will be paid in cash based on the final prices of Ether and Bitcoin. This innovative product is aimed at unlocking opportunities for a broader clientele to hedge positions and implement various trading strategies in an economical way.
CME Group has consistently broadened its cryptocurrency-related product offerings. In 2017, it unveiled plans to launch Bitcoin Futures in the fourth quarter, marking a pivotal moment in the mainstream financial world's acceptance of cryptocurrencies. However, this announcement was not without controversy.
Critics argued that the introduction of Bitcoin futures would lead to increased market manipulation and volatility. Despite these concerns, the CME proceeded with the launch, and over time, these futures have become an essential tool for institutional investors to gain exposure to Bitcoin.In February 2021, the company launched Ether futures, further expanding its suite of crypto derivative products. Later in the same year, Micro Bitcoin futures and Micro Ether futures were launched, offering investors another way to gain exposure to these digital assets but with a smaller capital requirement. Additionally, CME Group incorporated Bitcoin Euro and Ether Euro futures into its portfolio in August.
Valeria Blokhina
Gamza Khanzadaev
Yuri Molchan
