CME Group to Release Euro-Backed BTC and ETH Futures

The world’s leading financial derivatives platform – Chicago Mercantile Exchange (CME) Group – revealed intentions to introduce Bitcoin and Ether Futures tide to 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, justifying its move with the surging investor appetite for such services.

CME Dives Deeper

Despite the grim condition of the cryptocurrency market, the American-based firm doubled down on its digital asset endeavors. It announced the introduction of euro-denominated Bitcoin and Ether futures that will become available for customers at the end of the month.

CME explained that those contracts will be sized at five BTC and 50 ETH per contract. The new features will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate. The entity assured they will be subject to the already built rules.

Tim McCourt – Global Head of Equity and FX Products at CME Group – argued that the current status of the crypto sector increases the clients’ interest in such products:

“Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating an increased demand for risk management solutions by institutional investors outside the U.S.

Our 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 cap.”

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

“Year-to-date, the EMEA region represents 28% of total Bitcoin and Ether futures contracts traded, up more than 5% versus 2021,” he noted.

The derivatives marketplace giant allows users to trade futures, options, cash, and OTC markets. It also enables a wide range of products across major asset classes, including crypto. Q2 2022 was a highly successful period for CME Group since Ether futures reached a record average daily volume of 6.6K contracts (27% more than in Q1).

The Previous Crypto Steps

CME Group hopped on the digital asset bandwagon in 2017 by releasing Bitcoin futures contracts. In March 2022, CME launched micro options on Bitcoin and Ether futures. Back then, Tim McCourt commented:

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

Futures contracts enable investors to gain exposure to digital currencies without purchasing them and worrying about storing their holdings. The products require consumers to sell them on a specific date.