CME Group to launch Ether/Bitcoin futures
“This new ETH/BTC cross-cryptocurrency contract from CME Group should allow investors more flexibility when hedging positions in non-dollar offshore markets.”
CME Group has announced plans to launch Ether/Bitcoin Ratio futures in July in a new milestone for CFTC-regulated cryptocurrency derivatives.
The Ether/Bitcoin Ratio futures will be cash-settled to the value of CME Group Ether futures final settlement price, divided by the corresponding CME Group Bitcoin futures final settlement price. The new contract will follow the same listing cycle as CME Group Bitcoin futures and Ether futures contracts.
The upcoming futures contracts will allow market makers to arbitrage synthetically the ETH/BTC cross. It’s also good news for those looking to hedge positions in non-dollar offshore markets. Investors will be able to capture ether and bitcoin exposure in a single trade, without needing to take a directional view.
Ether/Bitcoin Ratio futures completes the currency triangle
Giovanni Vicioso, Head of Cryptocurrency Products at CME Group, said: “Historically, ether and bitcoin have been highly correlated; however, as the two assets have grown over time, market dynamics may affect the performance of one more than the other, creating relative value trading opportunities. “With the addition of Ether/Bitcoin Ratio futures, investors will be able to capture ether and bitcoin exposure in a single trade, without needing to take a directional view. This new contract will help create opportunities for a broad array of clients looking to hedge positions or execute other trading strategies, all in an efficient, cost-effective manner.”
Jason Urban, Global Head of Trading at Galaxy, said: “The launch of CME Group Ether/Bitcoin Ratio futures further expands the marketplace for institutions and sophisticated investors who want digital asset exposure in a regulated environment. We’re excited to support this product, which will appeal to investors looking to take advantage of changes between the two biggest digital assets by market capitalization. We commend CME Group’s ongoing commitment to developing innovative offerings essential to building an enduring ecosystem for this asset class.”
Paul Eisma, Head of Options Trading at XBTO, commented: “The launch of Ether/Bitcoin Ratio futures completes the currency triangle allowing market makers such as XBTO the ability to arbitrage synthetically, for the first time, all three futures legs: the BTC/USD and ETH/USD dollar legs, and the ETH/BTC cross. CME Group’s innovative, regulated product will help increase volumes, reduce spreads, and give institutional crypto market participants a vehicle to express relative value between BTC and ETH.”
Brooks Dudley of Marex Capital Markets, Inc., said: “This new ETH/BTC cross-cryptocurrency contract from CME Group should allow investors more flexibility when hedging positions in non-dollar offshore markets. This marks another important advancement for CFTC-regulated cryptocurrency derivatives.”
Ether/Bitcoin Ratio futures will allow market makers to arbitrage synthetically the ETH/BTC cross. It’s also good news for those looking to hedge positions in non-dollar offshore markets.