CME Group has announced that it is planning to increase its product portfolio for the benefit of its users. The derivatives market currently leading the entire derivatives segment throughout the world is seeking exposure in the crypto-verse.
CME Group to Launch Bitcoin and Ethereum Futures
CME Group has publicly announced that it is looking forward to offering clients and investors with derivatives. The executives have mentioned that they plan on fulfilling their claim on August 29.
The cryptocurrency derivatives the CME Group is planning to offer include Ethereum and Bitcoin futures.
Regulatory Approval is pending
The CME Group has revealed that they have submitted the request for the approval of the cryptocurrency derivatives with the regulatory authorities.
The derivatives will be launched once the approval has been given by the relevant regulatory authority. As soon as the regulatory authorities grant permission to list the derivatives, the users will be able to trade in them.
Details about the Crypto Derivatives
The CME Group has confirmed that both the Bitcoin and Ethereum futures derivatives will be euro-paired. The plan is to launch both derivatives on August 29 but the exact date for their launch is subject to approval from the regulatory authorities.
Once the derivatives are approved, they will be allocating contract sizes to both Ethereum and Bitcoin futures. The contract size for Ethereum contracts will be limited to 50 ETH while the contract size for Bitcoin futures will be set to 5 BTC.
The CME Group has confirmed that the payments for the contracts being launched will be paid in cash. The payments will be made in the form of EUR, and they would be based on the Ether-Euro and Bitcoin-Euro reference rates.
With the launch of the derivatives for cryptocurrencies, the CME Group will be offering great help to the cryptocurrency industry.
The cryptocurrency industry will gain the opportunity of thriving within the mainstream industry through institutionalization. The cryptocurrency markets will continue gaining exposure within the mainstream sector.
As the euro is the second-most demanded fiat currency in the entire world, crypto derivatives that are traded with the euro will gain a huge advantage over other assets and more mainstream exposure.
Tim McCourt’s Statement
CME Group’s Head of FX Products and Global Equities, Tim McCourt talked about the recent achievement of their entity.
He stated that their Ethereum Euro and Bitcoin Euro futures contracts will be a step forward for them in the world of cryptocurrencies. Instead of entering the world of cryptocurrencies, they have invited the cryptocurrency industry to their space.
As per McCourt, they have the right tools and exposure to hedge tactics to support their clients with crypto-based derivatives.