By Will Feuer

Derivatives marketplace CME Group Inc. said it is launching options contracts on futures tied to the cryptocurrency Ether.

The company said the new contracts will deliver one Ether futures, sized at 50 Ether per contract, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of ether.

"The launch of our new Ether options contracts is particularly well-timed to provide the crypto community with another important tool to gain access to and manage exposure to ether," CME Group Global Head of Equity and FX Products Tim McCourt said. He said CME Group's Ether futures have seen a 43% increase in average daily volume from a year ago.

The move comes as developers prepare for an update to the Ethereum blockchain that has been called the so-called merge, in which the network is expected to shift from the current proof-of-work model to a proof-of-stake model. The move is meant to make the network faster and more energy efficient.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

September 12, 2022 09:06 ET (13:06 GMT)

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