“Interest in Ether derivatives is growing as market participants anticipate Ethereum Merge, a potentially game-changing update to one of the largest cryptocurrency networks.”
CME Group has launched options on Ether futures as planned. Each Ether futures contract is sized at 50 Ether per contract and is based on the CME CF Ether Dollar reference rate which serves as his daily reference rate for the USD price of Ether.
Derivatives markets said last month that CME’s Ether options are under review by regulators and exchange operators are waiting for approval before introducing new products to the market.
These new contracts also extend CME Group’s existing suite of cryptocurrency options contracts. This includes Bitcoin options and micro-sized Bitcoin and Ether options.
Interest in Ether Derivatives Growing Amidst Ethereum Marge
Tim McCourt, Global Head of Equities and FX Products at CME Group, said: The launch of the new Ether Options Contract is a perfect time to give the cryptocurrency community another important tool for managing their access to and exposure to Ether. Our new options contract also complements CME Group’s Ether futures, with average daily volume up 43% year-over-year. ”
Rob Strebel, DRW’s Head of Relationship Management, commented: CME Group has proven the trading and clearing infrastructure that underpins the product and is pleased to offer liquidity from day one. We expect to continue to see strong demand for this Ether options contract as Ether transitions through a merger scheduled for this week. ”
Leon Marshall, Global Head of Sales at Genesys, said: A new Ether options contract has been launched ahead of the long-awaited Ethereum merger, giving customers more flexibility in trading and hedging Ether price risk. ”
Both futures and options are a way for investors to bet on cryptocurrency price movements without actually owning the underlying coin, avoiding regulatory and custodian issues.
However, futures are generally riskier than options, with the latter’s sole financial liability being the premium paid upon purchase. Futures contracts, on the other hand, come with maximum liability.