The Chicago Mercantile Exchange (CME) Group, a global leader in derivatives exchange, has announced its intention to launch Ethereum/Bitcoin (ETH/BTC) ratio futures. This exciting new product, set to debut on July 31, is currently awaiting regulatory approval.
CME Group’s Innovative Step into Crypto Futures
The ETH/BTC ratio futures, designated by the ticker EBR, is calculated by dividing the Ethereum futures price by the Bitcoin futures price. This ratio, which will always remain positive, offers a unique way to evaluate the relative performance of these two leading cryptocurrencies.
The Potential of Ratio Futures Contracts
Ratio futures contracts are financial derivatives that allow investors to speculate on or hedge against the relative performance of two assets.
CME Group Global Head of Cryptocurrency Products, believes that the ETH/BTC ratio futures will provide investors with the opportunity to capture the value of the two largest crypto assets in a single trade, without the need to take a directional view.
CME’s Pioneering Role in Crypto Futures
CME Group has been a trailblazer in the crypto futures market, launching its first Bitcoin futures contract in December 2017. This move was instrumental in providing institutional investors with a regulated platform for trading Bitcoin futures, thereby fostering greater mainstream adoption and potentially enhancing market liquidity.
About the Impact of CME’s Crypto Futures
Despite some attributing the market slump following the launch of Bitcoin futures on CME to the product itself, such speculations have been dismissed by CME executives. The introduction of Ethereum futures in February 2021 further solidified CME’s position in the crypto futures market. With over $4.67 billion in Bitcoin futures contracts and $429.2 million in Ethereum futures traded in the last 24 hours, CME continues to play a pivotal role in the crypto industry.
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