The Chicago Mercantile Exchange (CME) Group has announced that it will be launching Ether/Bitcoin Ratio futures on July 31. This new futures contract will allow investors to efficiently capture the relative value of ether and bitcoin in a single trade. The settlement of these futures contracts will be in cash, based on the final settlement price of CME Group’s Ether (ETH) futures divided by the final settlement price of CME Group’s Bitcoin (BTC) futures.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, highlighted the potential for relative value trading opportunities between Ether and Bitcoin. While these two assets have historically displayed high correlation, their market dynamics may now vary, making it possible to capitalize on their performance differences. Vicioso stated, “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.”
The launch of Ether/Bitcoin Ratio futures builds upon CME Group’s existing cryptocurrency offerings. The company first entered the cryptocurrency market in December 2017 with the introduction of the first Bitcoin futures contract. In February 2021, CME Group further expanded its offerings by introducing an Ether futures contract. Recognizing the growing demand for cryptocurrency investment opportunities, CME Group expanded its offerings once again in 2022 with the introduction of micro BTC and ETH futures contracts.
On April 17, CME Group announced plans to expand its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts. These new contracts were set to become available from May 22, pending regulatory review. The expansion included daily expiries from Monday to Friday, allowing traders to better manage short-term price risks. This move aimed to offer market participants increased precision and flexibility in managing Bitcoin’s and Ether’s short-term price risks amid heightened volatility in the digital asset sector.
The introduction of Ether/Bitcoin Ratio futures continues CME Group’s commitment to providing traders with a wide range of cryptocurrency investment options. As the cryptocurrency market continues to evolve and mature, CME Group remains at the forefront, offering innovative products that meet the needs of investors and traders alike.
With the launch of Ether/Bitcoin Ratio futures on July 31, investors will have even more opportunities to participate in the cryptocurrency market and capitalize on the performance differences between Ether and Bitcoin. Whether seeking to hedge positions or execute other trading strategies, investors can now do so in an efficient and cost-effective manner through CME Group’s futures contracts. As the cryptocurrency market continues to gain mainstream acceptance and recognition, products like Ether/Bitcoin Ratio futures play an important role in providing investors with access to this exciting and rapidly growing asset class.
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