CME Group, the world's largest financial derivatives exchange, announced plans to launch ether (ETH) futures on February 8, 2021. Currently, the exchange is pending regulatory review.
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According to CME, the new contract will be cash-settled, based on the CME CF Ether-Dollar Reference Rate. ETH futures will be listed on and subject to the rules of CME. Tim McCourt, Global Head of Equity Index and Alternative Investment Products at CME Group, says the exchange notice an increased client demand and robust growth in its bitcoin (EXANTE: Bitcoin) futures, which is why the company decided to list ETH futures.
"The introduction of listed Ether futures to our time-tested, regulated CME Group derivatives marketplace will help to create a forward curve so Ethereum market participants can better manage price risk," McCourt added.
The new futures contract will join CME Group's BTC futures and options. As of press time, ETH is trading at $625.
In May 2020, trading volumes and open interest in CME's BTC options, which were launched earlier this year, increased significantly after the largest cryptocurrency by market cap completed its third halving by reducing the reward given to miners for mining a block from 12.5 to 6.25 BTC.
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