CME Group to Launch ETH to BTC Ratio Futures

    Pending regulatory review, the planned commencement date for these futures contracts is slated for July 31.

    The Chicago Mercantile Exchange (CME) Group has revealed its intention to introduce futures contracts for the Ether/Bitcoin Ratio. The launch of these contracts is scheduled for July 31, pending regulatory review, as announced on June 29.

    CME Group has announced the introduction of Ether/Bitcoin Ratio futures, with cash settlement based on the final settlement price of Ether futures divided by Bitcoin futures’ final settlement price. This new addition will follow the identical listing cycle as CME Group’s Ether and Bitcoin futures.

    Giovanni Vicioso, CME Group’s global head of cryptocurrency products, emphasizes the potential for relative value trading opportunities between Ether and Bitcoin. Despite the two assets displaying a positive correlation historically, their market dynamics may differ now, leading to opportunities for investment and performance. Notably, investors can gain exposure to both digital assets without a directional view through this new contract.

    CME Group first introduced the Bitcoin futures contract in December 2017, followed by an Ether futures contract in February 2021. Recently, the platform expanded its offerings by unveiling micro BTC and ETH futures contracts, allowing more options for digital asset traders. 

    Regulators must still approve the new standard and micro-sized Bitcoin and Ether contracts options that CME Group announced in April 2022, which would become available from May 22. With daily expiries from Monday to Friday, traders aim to manage Bitcoin and Ether’s short-term price risks more precisely amid the increasing digital asset sector’s volatility.

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