CME Group to launch EUR-backed BTC and ETH futures contracts

The world’s leading financial derivatives platform – Chicago Mercantile Exchange (CME) Group – has revealed intentions to list Bitcoin and Ether futures in the euro later in August

The company already has a deep history with the crypto industry. A few months ago, it launched micro-options on Bitcoin and Ether futures contracts, justifying its move with the growing appetite of investors for such services.

CME dives deeper

Despite the gloomy state of the cryptocurrency market, the American company has redoubled its efforts in digital assets. The was announced the introduction of Euro Bitcoin and Ether futures that will be available to customers at the end of the month.

CME explained that these contracts will have a size of five BTC and 50 ETH per contract. The new features will be settled in cash, based on the CME CF Bitcoin-Euro Reference Rate and the CME CF Ether-Euro Reference Rate. The entity assured that they will be subject to the already formulated rules.

Tim McCourt – Global Head of Equity and FX Products at CME Group – argued that the current state of the crypto sector is increasing client interest in such products:

“Continued uncertainty in cryptocurrency markets, along with strong growth and deep liquidity in existing Bitcoin and Ether futures contracts, is creating increased demand for risk management solutions from non-U.S. institutional investors

Bitcoin Euro and Ether Euro futures will provide our clients with more accurate tools to trade and hedge exposure to the two largest cryptocurrencies by market capitalization.”

The executive added that euro-denominated digital assets rank as the second highest traded fiat behind the US dollar.

“Year-to-date, the EMEA region accounts for 28% of total Bitcoin and Ether futures traded, an increase of more than 5% compared to 2021,” he noted.

The derivatives market giant allows users to trade futures, options, cash and OTC markets. It also enables a wide range of products across major asset classes, including cryptocurrencies. The second quarter of 2022 was an extremely successful period for the CME Group, as Ether futures reached a record average daily volume of 6.6 thousand contracts (27% more than in the first quarter).

The previous encryption steps

CME Group jumped into the digital asset bandwagon in 2017, launching Bitcoin futures contracts. In March 2022, CME launched micro-options on Bitcoin and Ether futures contracts. At the time, Tim McCourt commented:

“The launch of these micro options builds on the significant growth and liquidity we have seen in Micro Bitcoin and Micro Ether futures. These contracts will give a wide range of market participants – from institutions to sophisticated, active, individual traders – greater flexibility and precision in managing their exposure to the top two cryptocurrencies by market capitalization.”

Futures contracts allow investors to gain exposure to digital currencies without buying them and worrying about storing their holdings. Products require consumers to sell them on a certain date.