CME Group, the world’s leading derivatives marketplace, announced today that it plans to further expand its cryptocurrency derivatives offering with the launch of Bitcoin Euro and Ether Euro futures on August 29, pending regulatory review.
The Bitcoin Euro and Ether Euro futures contracts, which are designed to match their US dollar-denominated counterparts, will be sized at five bitcoin and 50 ether per contract. These new contracts will be cash-settled based on the CME CF Bitcoin-Euro Reference Rate and the CME CF Ether-Euro Reference Rate, which serve as the daily reference rates of the euro-denominated price of Bitcoin and Ether. These new futures contracts will be listed on and governed by the rules of the CME.
“The continued uncertainty in the cryptocurrency markets along with the robust growth and deep liquidity of our existing bitcoin and ether futures are driving increased demand for risk management solutions from non-US institutional investors. Our Bitcoin-Euro and Ether-Euro futures contracts will provide clients with more accurate tools for trading and hedging exposure to the two largest cryptocurrencies by market cap,” said Tim McCourt, Global Head of Equity and FX Products, CME group. “Euro-denominated cryptocurrencies are the second most traded fiat behind the US dollar. Year-to-date, EMEA represents 28% of all bitcoin and ether futures contracts traded, up more than 5% from 2021.”
“CME Group’s launch of euro-denominated bitcoin and ether futures will help meet growing demand for regulated and resilient non-USD crypto derivatives,” said Edmond Goh, Head of Trading at B2C2. “As a leading OTC counterparty, we look forward to continuing to provide liquid markets in this important asset class.”
“TP ICAP is pleased to support another market-defining cryptoasset product from CME Group. Our Digital Assets business has been operational since early 2020 brokering CME Group cryptoassets, initially in London, followed by an expansion into the US in 2021 and most recently into APAC via Hong Kong and Singapore,” said Sam Newman, Digital Assets Head of Brokered at TP ICAP. “Interest in cryptoassets has grown tremendously and these new euro-denominated futures contracts will help further expand the accessibility and usefulness of cryptoasset derivatives, particularly in Europe.”
CME Group’s cryptocurrency product suite continues to provide consistent liquidity, volume and open interest for clients looking to hedge their risk or gain exposure to the asset class. Q2 was a record quarter in terms of average daily open interest (106.2K contracts) and the second-highest quarter ever in terms of average daily volume (57.4K contracts) across all cryptocurrency products. Additionally, ether futures hit a record average daily volume of 6.6k contracts in Q2, up more than 27% from Q1.
For more information about this product, visit https://www.cmegroup.com/cryptocurrencies#explore-our-cryptocurrency-products.