CME Group goes live with micro ether (ETH) futures

abdelaziz Fathi

CME Group, the world’s largest derivatives marketplace, announced Tuesday the launch of its second micro cryptocurrency product.

Roughly nine months after the launch of its first Ether derivative product, CME Group is bringing another level of diversification to cryptocurrency traders with a micro Ether futures contract.

Closely tied to its older brother, the smaller-sized contract is based on the same underlying reference index, the CME CF Ether-Dollar Reference Rate, and is settled in cash. The micro Ether futures will be priced off at that index which was developed in partnership with Crypto Facilities to provide real-time ether price in dollars. The index references pricing data using transactions and order book activity from several cryptocurrency exchanges, currently made up of Kraken and Bitstamp.

The micro contract will have just 1/10 of the notional value of the original contract. CME’s mini futures on the No.2 cryptocurrency has been reviewed by regulators, and the exchange operator today confirms the addition was cleared and will be available for purchase.

Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, comments:

“The launch of Micro Ether futures underscores the significant growth and liquidity we have seen in our cryptocurrency futures and options. Sized at one-tenth of one Ether, Micro Ether futures will provide an efficient, cost-effective way for a range of market participants – from institutions to sophisticated, active, individual traders – to hedge their spot Ether price risk or more nimbly execute Ether trading strategies, all while retaining the features and benefits of CME Group’s larger-sized Ether futures.”

Call it a major move

Chicago-based CME said the move marks a new development in the nascent crypto futures market that will give new access to retail investors, either those looking to branch into different markets or struggling to participate due to limited capitalization.

One-tenth of the size of standard contracts is introducing professional traders to many benefits when trading these limited-risk contracts.

Surging prices led to a jump in open interest and trading volume for CME’s ether futures as investors sought to hedge their positions in the spot market by opening futures positions at the exchange.

Furthermore, the mini ETH derivatives come barely five months after the launch of micro Bitcoin futures, which was the latest move by the world’s largest futures exchange operator to expand into the crypto business.

Read this next

Digital Assets

Europe bans crypto payments to Russians as €10K cap scrapped

The European Union is taking further steps to sanction Russia after the recent developments surrounding its invasion of Ukraine.

Digital Assets

Mt. Gox creditors to get their funds through Bitstamp, other exchanges

The distribution of funds to creditors of the defunct crypto exchange Mt. Gox is set to kick off as the business’s Japanese bankruptcy trustee released a memo updating them of a new function and important deadlines.

Institutional FX

Tradeweb’s trading volumes hit $1.20 trillion per day in September

Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the month of September 2022, which has seen continued strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.

Crypto Insider

Cryptocurrency Spoofing: Why Should Investors Care About It?

Investors don’t just care about making more money. They care about their safety and security, too. This is observable in cryptocurrency, where consumers always protect their financial interests. People have developed this habit of fear of falling victim to possible scams and frauds.

Retail FX

FSCS closes London Capital & Finance (LCF) scandal after three years

The Financial Services Compensation Scheme (FSCS) has provided a final date for closing the scheme to compensate investors who lost money in the London Capital & Finance scandal, namely on 31 October 2022.

Institutional FX

Cboe reports highest ADV for FX volume in two years

Cboe’s institutional spot FX platform today announced its trading volume for the month ending September 2022, which marks its third-highest month ever.

Executive Moves

Investall hires ex-DriveWealth Steve Cortright as CEO

Investall is an AI-driven mobile trading platform for personal finance and investing that delivers AI-driven trading for thousands of equities and major cryptocurrencies.

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

<