CME Group will launch futures on the ratio of bitcoin and Ethereum
Date: 2023-07-02 Author: Karina Ziganova Categories: BLOCKCHAIN
A new investment product will appear on the derivatives market - the Chicago Mercantile Exchange (CME) will launch futures for the ratio of bitcoin (BTC) and Ethereum (ETH).
On June 29, CME Group, the largest derivatives trading platform, announced the launch of futures contracts for the ratio of bitcoin and Ethereum. If approved by the regulator, the product will be available at the end of July.
Ratio futures is a type of contract in which the underlying asset is the ratio of two commodities. Thus, investors will be able to use it to speculate on changes in the price of Bitcoin and Ethereum or hedge risks.
According to a statement from CME, the platform will offer 6-month and 4-quarter contracts. The product will receive the ticker EBR.
"With the addition of BTC-ETH ratio futures, investors will be able to cover the risks of both assets in a single trade, without having to take a directional opinion. Historically, these two cryptocurrencies have been highly correlated. Market dynamics can influence their price changes to varying degrees, creating opportunities for relative value trading," comments Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group.
Jason Urban, head of global trading at Galaxy Digital, added that the launch of the new product from CME will expand investment opportunities for institutions and "sophisticated traders." Brooks Dudley of Marex Capital Markets, in turn, called it an important step for the CFTC-regulated cryptocurrency derivatives market.
CME is actively expanding its product line to digital asset-related derivatives. In December 2017, the platform launched bitcoin futures, which instantly attracted the attention of institutional investors, and in February 2021, it added an Ethereum-based contract.
