Chicago Mercantile Exchange (CME) Group has announced plans to expand its crypto offering by adding Bitcoin and Ethereum Euro futures on 29 August 2022. However, the new offering is subject to regulatory approval.
This is coming after the CME Group launched its micro-sized Bitcoin and Ethereum options in March. The euro-denominated tokens will be sized at 5 BTC and 50 ETH per contract.
CME will list both contracts on its platform based on its Ether-Euro Reference Rate and Bitcoin-Euro Reference Rate.
CME Records Growth In Demand For BTC And ETH Futures
Global head of equity and FX products at CME Group, Tim McCourt, stated that there has been impressive growth and deep liquidity in CME’s Bitcoin and Ether futures. This, along with the volatility in the crypto markets, has increased demand for risk management solutions, especially from institutional investors outside the US.
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Apart from the U.S. dollar, Euro-denominated digital assets have become the highest traded fiat. McCourt added that 28% of all trades on BTC and ETH futures contracts are from Africa, the Middle East, and Europe. This growth is coming at the time the euro is being valued side by side with the U.S. dollar after reaching parity in July for the first time in 2 decades.
CME Group rolled out its first BTC futures contract in December 2017, denominated in U.S. dollars. In February 2021, it followed that up with the launch of the ETH futures contract before launching micro BTC and ETH futures in March this year.
A Record Activity In BTC And ETH Derivatives Contracts
Last month, CME Group reported that its BTC and ETH derivatives contracts had record activity in Q2 2022, trading10,700 and 6,100 contracts, respectively. During the same period, the derivates exchange reported an average daily volume of 17,400 and 21,300 contracts for BTC and Ethereum, respectively.
The majority of the trading volume came due to the high volatility in the crypto market, with both Bitcoin and Ethereum declining in May. McCourt added that the BTC Euro and ETH Euro future contracts will give clients more precise tools for trading and hedging exposure to the two largest crypto assets by market cap.