CME Group to launch Euro-pegged BTC and ETH futures in August

The world’s most recognized derivatives marketplace, CME Group, announced that it intends to extend further its cryptocurrency derivatives offering on August 29, pending regulatory approval, with the launch of Bitcoin (BTC) Euro and Ethereum (ETH) Euro futures.

The Bitcoin Euro futures contracts and the Ether Euro futures contracts will each be scaled at 5 Bitcoin and 50 Ether to mirror their U.S. dollar-denominated equivalents, according to a press release by the marketplace on August 3.

Using the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, these new contracts will be cash settled, depending on the euro-denominated price of Bitcoin and Ethereum once a day. 

Since these new futures contracts will be listed on the CME, they will be subject to its regulations. Tim McCourt, Global Head of Equity and FX Products, CME Group, said:

“Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating increased demand for risk management solutions by institutional investors outside the U.S. Our Bitcoin Euro and Ether Euro futures contracts will provide clients with more precise tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.”

Rising demand for non-USD crypto derivatives

In particular, the launch of euro-pegged futures contracts for Bitcoin and Ethereum is an attempt to meet the rising demand for regulated and robust non-USD cryptocurrency derivatives.

Clients looking to hedge their risk or acquire exposure to the asset class may continue to access continuous liquidity, volume, and open interest via the CME Group’s cryptocurrency product suite.

McCourt added: 

“Euro-denominated cryptocurrencies are the second highest traded fiat behind the U.S. dollar. Year-to-date, the EMEA region represents 28% of total Bitcoin and Ether futures contracts traded, up more than 5% versus 2021.”

Interestingly, CME Group states that Q2 was a record quarter in terms of average daily open interest (106,200 contracts) and was the second highest quarter ever in terms of average daily volume (57,400 contracts) across all cryptocurrency products. 

In addition, Ether futures achieved a record average daily volume of 6,600 contracts in Q2, an increase of more than 27% compared to the first quarter.

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