Euro-pegged Bitcoin (BTC) and Ethereum (ETH) futures from leading global derivatives marketplace CME Group will begin trading today, Monday, August 29.
CME stated in a statement released on August 28 that futures will allow global institutional investors to have exposure to digital assets while hedging their position.
According to CME, the Bitcoin Euro structure will be scaled at 5 BTC, while the Ether Euro structure will be scaled at 50 Ether per contract. Contracts can be settled in cash using the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate.
CME Group’s Global Head of Equity and FX Products, Tim McCourt, stated:
“The launch of these new futures contracts builds on the strong growth and deep liquidity we have seen in our existing U.S. dollar-denominated Bitcoin and Ether futures contracts.”
“Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap,” said
Non-USD cryptocurrency derivatives are in high demand.
The trading occurs less than a month after the platform announced plans to launch the product in response to rising worldwide demand for regulated and robust non-USD cryptocurrency futures.
Notably, demand is driven by clients’ need to hedge their risk and gain exposure to the crypto asset class while maintaining continuous liquidity, volume, and open interest.
Previously, in 2022 Q2, CME Group had the greatest average daily open interest (106,200 contracts) and the second highest average daily volume (57,400 contracts) across all bitcoin products.