Designed to match their US dollar-denominated counterparts, the Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoins and 50 ether per contract. These new contracts will be settled in cash, based on the CME CF Bitcoin-Euro benchmark rate and the CME CF Ether-Euro benchmark rate, which serve as the once-a-day benchmark rates of the euro-denominated price of bitcoin and ether. These new futures contracts will be listed and subject to CME rules.
“The continuing uncertainty in cryptocurrency markets, coupled with the robust growth and deep liquidity of our Bitcoin and Ether futures, is creating greater demand for risk management solutions from institutional investors outside the United States. Bitcoin Euro and Ether Euro futures contracts will provide clients with more precise tools to trade and hedge exposure to the two largest cryptocurrencies by market capitalization, “he said. Tim McCourt, Global Head of Equity and FX Products, CME Group. “Euro-denominated cryptocurrencies are the second most traded fiat currency behind the US dollar. Since the beginning of the year, the EMEA region has accounted for 28% of total Bitcoin and Ether futures contracts traded, an increase of more than 5% over the previous year. 2021 “.
“CME Group’s launch of euro-denominated Bitcoin and Ether futures will help meet the growing demand for regulated and robust crypto derivatives, not in USD,” he said. Edmond Goh, Head of Trading at B2C2. “As the leading OTC counterparty, we look forward to continuing to provide liquid markets in this important asset class.”
“TP ICAP is excited to support another cryptoasset product that defines CME Group’s market. Our Digital Assets business has been CME Group’s operational and cryptocurrency brokerage since early 2020, originally in Londonfollowed by expansion into the United States in 2021 and, more recently, in APAC on Hong Kong And Singapore,” She said Sam Newman, Digital Assets Head of Brokering at TP ICAP. “Interest in cryptocurrencies has seen tremendous growth and these new euro-denominated futures contracts will help further expand the accessibility and usefulness of cryptocurrency derivatives, particularly within Europe. ”
CME Group’s suite of Cryptocurrency products continues to provide consistent liquidity, volume and open interest for clients looking to hedge their risk or gain exposure to the asset class. The second quarter was a record quarter in terms of average daily open interest (106.2K contracts) and was the second highest ever quarter in terms of average daily volume (57.4,000 contracts) across all cryptocurrency products. Additionally, Ether futures achieved a record daily average volume of 6.6K contracts in the second quarter, up by more than 27% compared to the first quarter.
For more information on this product, please visit https://www.cmegroup.com/cryptocurrencies#explore-our-cryptocurrency-products.
As the world’s leading derivatives market, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios and analyze data, enabling market participants from around the world to manage risk efficiently and seize opportunities. CME Group exchanges offer the broadest range of global benchmark products across all major asset classes based on interest rates, equity indices, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading through BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing.
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SOURCE ECM Group