Bitcoin (BTC) and Ethereum (ETH) will receive euro futures on the world’s market-leading options exchange of the Chicago Mercantile Exchange Group from August 29.
As can be seen from an official announcement by the CME Group yesterday, futures denominated in euro (EUR) for the two market-leading cryptocurrencies Bitcoin and Ethereum will soon be launched at the CME, each with a value of 5 BTC and 50 ETH per contract. Both futures are settled in cash – i.e. in euros – and are based on the in-house reference rates CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate.
“The ongoing uncertainty in the crypto markets coupled with the robust growth and large liquidity of our existing futures for Bitcoin and Ethereum ensures that there is an increased demand for opportunities for risk distribution from institutional investors outside the US,” explains Tim McCourt, Global Head of Equity and FX Products at CME Group. He adds: “Cryptocurrencies denominated in euros are the second largest currency pairs behind the US dollar.“
Introducing Bitcoin Euro and Ether Euro futures, a second currency pair on our market-leading Cryptocurrency futures. Manage bitcoin and ether exposure in the underlying currency of your choice starting Aug. 29th. https://t.co/PfN3hTCvWC pic.twitter.com/rci4NnAfKz
– CME Group (@CMEGroup) August 4, 2022
According to McCourt, countries in Europe, the Middle East and Africa account for almost 28% of the BTC and ETH futures traded on the options exchange.The CME Group launched the corresponding futures in US dollars in December 2017 for Bitcoin and in February 2021 for Ethereum.
The CME is one of the most important platforms for institutional investments in the crypto market. As Cointelegraph has reported, despite the ongoing bear market, a new record value of 10,700 and 6,100 traded futures for BTC and ETH was recorded for the second quarter of 2022, respectively.